Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35469 | |
Entity Registrant Name | VOCERA COMMUNICATIONS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3354663 | |
Entity Address, Address Line One | 525 Race Street | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95126 | |
City Area Code | 408 | |
Local Phone Number | 882-5100 | |
Title of 12(b) Security | Common Stock, $0.0003 par value | |
Trading Symbol | VCRA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 34,714,806 | |
Entity Central Index Key | 0001129260 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 40,480 | $ 34,976 |
Short-term investments | 251,428 | 195,227 |
Accounts receivable, net of allowance | 36,596 | 45,653 |
Other receivables | 6,473 | 6,170 |
Inventories | 8,602 | 10,159 |
Prepaid expenses and other current assets | 7,208 | 6,317 |
Total current assets | 350,787 | 298,502 |
Property and equipment, net | 6,848 | 8,103 |
Intangible assets, net | 22,906 | 12,788 |
Goodwill | 94,846 | 69,168 |
Deferred commissions | 14,854 | 12,293 |
Other long-term assets | 7,876 | 5,967 |
Total assets | 498,117 | 406,821 |
Current liabilities | ||
Accounts payable | 3,219 | 3,127 |
Accrued payroll and other current liabilities | 24,757 | 23,195 |
Deferred revenue, current | 52,065 | 54,785 |
Total current liabilities | 80,041 | 81,107 |
Deferred revenue, long-term | 10,490 | 9,948 |
Convertible senior notes, net | 258,285 | 124,376 |
Other long-term liabilities | 7,396 | 10,374 |
Total liabilities | 356,212 | 225,805 |
Stockholders' equity | ||
Preferred stock, $0.0003 par value - 5,000,000 shares authorized as of June 30, 2021 and December 31, 2020; zero shares issued and outstanding | 0 | 0 |
Common stock, $0.0003 par value - 100,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 34,692,364 and 32,692,561 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 10 | 10 |
Additional paid-in capital | 296,467 | 340,515 |
Accumulated other comprehensive income | 107 | 473 |
Accumulated deficit | (154,679) | (159,982) |
Total stockholders’ equity | 141,905 | 181,016 |
Total liabilities and stockholders’ equity | $ 498,117 | $ 406,821 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in dollars per share) | $ 0.0003 | $ 0.0003 |
Preferred stock shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.0003 | $ 0.0003 |
Common stock shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock shares issued (in shares) | 34,692,364 | 32,692,561 |
Common stock shares outstanding (in shares) | 34,692,364 | 32,692,561 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | ||||
Total revenue | $ 56,180 | $ 47,347 | $ 104,848 | $ 88,020 |
Cost of revenue | ||||
Total cost of revenue | 19,924 | 17,404 | 37,707 | 34,291 |
Gross profit | 36,256 | 29,943 | 67,141 | 53,729 |
Operating expenses | ||||
Research and development | 12,006 | 9,349 | 22,356 | 18,381 |
Sales and marketing | 18,425 | 15,998 | 36,095 | 32,961 |
General and administrative | 9,064 | 6,923 | 16,339 | 13,314 |
Total operating expenses | 39,495 | 32,270 | 74,790 | 64,656 |
Loss from operations | (3,239) | (2,327) | (7,649) | (10,927) |
Interest income | 295 | 913 | 641 | 2,033 |
Interest expense | (794) | (2,308) | (1,571) | (4,582) |
Other income (expense), net | 1,544 | 210 | (1,002) | (381) |
Loss before income taxes | (2,194) | (3,512) | (9,581) | (13,857) |
(Provision for) benefit from income taxes | (88) | 44 | (334) | (81) |
Net loss | $ (2,282) | $ (3,468) | $ (9,915) | $ (13,938) |
Loss per share | ||||
Basic (in dollars per share) | $ (0.07) | $ (0.11) | $ (0.29) | $ (0.44) |
Diluted (in dollars per share) | $ (0.07) | $ (0.11) | $ (0.29) | $ (0.44) |
Weighted average shares used to compute net loss per share | ||||
Weighted-average shares used to compute net income (loss) per common share - basic (in shares) | 34,485 | 32,152 | 33,790 | 31,945 |
Weighted-average shares used to compute net income (loss) per common share - diluted (in shares) | 34,485 | 32,152 | 33,790 | 31,945 |
Product | ||||
Revenue | ||||
Total revenue | $ 28,344 | $ 23,951 | $ 50,952 | $ 41,801 |
Cost of revenue | ||||
Total cost of revenue | 7,541 | 7,710 | 14,497 | 14,074 |
Service | ||||
Revenue | ||||
Total revenue | 27,836 | 23,396 | 53,896 | 46,219 |
Cost of revenue | ||||
Total cost of revenue | $ 12,383 | $ 9,694 | $ 23,210 | $ 20,217 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (2,282) | $ (3,468) | $ (9,915) | $ (13,938) |
Other comprehensive loss, net: | ||||
Change in unrealized gain (loss) on investments, net of tax | (132) | 1,806 | (366) | 850 |
Comprehensive loss | $ (2,414) | $ (1,662) | $ (10,281) | $ (13,088) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative effect | Common stock | Additional paid-in capital | Additional paid-in capitalCumulative effect | Accum. other comprehensive income (loss) | Accumulated deficit | Accumulated deficitCumulative effect |
Balance (shares) at Dec. 31, 2019 | 31,660,709 | |||||||
Balance at Dec. 31, 2019 | $ 163,825 | $ 9 | $ 313,963 | $ 179 | $ (150,326) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of stock options (shares) | 77,909 | |||||||
Exercise of stock options | 731 | 731 | ||||||
RSUs released net of shares withheld for tax settlement (shares) | 64,161 | |||||||
RSUs released net of shares withheld for tax settlement | (864) | (864) | ||||||
Employee stock-based compensation expense | 5,841 | 5,841 | ||||||
Net loss | (10,470) | (10,470) | ||||||
Other comprehensive gain (loss) | (956) | (956) | ||||||
Balance (shares) at Mar. 31, 2020 | 31,802,779 | |||||||
Balance at Mar. 31, 2020 | 158,107 | $ 9 | 319,671 | (777) | (160,796) | |||
Balance (shares) at Dec. 31, 2019 | 31,660,709 | |||||||
Balance at Dec. 31, 2019 | 163,825 | $ 9 | 313,963 | 179 | (150,326) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (13,938) | |||||||
Other comprehensive gain (loss) | 850 | |||||||
Balance (shares) at Jun. 30, 2020 | 32,347,972 | |||||||
Balance at Jun. 30, 2020 | 160,655 | $ 9 | 323,881 | 1,029 | (164,264) | |||
Balance (shares) at Mar. 31, 2020 | 31,802,779 | |||||||
Balance at Mar. 31, 2020 | 158,107 | $ 9 | 319,671 | (777) | (160,796) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of stock options (shares) | 46,508 | |||||||
Exercise of stock options | 594 | 594 | ||||||
RSUs released net of shares withheld for tax settlement (shares) | 372,639 | |||||||
RSUs released net of shares withheld for tax settlement | (4,716) | (4,716) | ||||||
Common stock issued under employee stock purchase plan (shares) | 126,046 | |||||||
Common stock issued under employee stock purchase plan | 1,966 | |||||||
Employee stock-based compensation expense | 6,366 | 6,366 | ||||||
Net loss | (3,468) | (3,468) | ||||||
Other comprehensive gain (loss) | 1,806 | 1,806 | ||||||
Balance (shares) at Jun. 30, 2020 | 32,347,972 | |||||||
Balance at Jun. 30, 2020 | 160,655 | $ 9 | 323,881 | 1,029 | (164,264) | |||
Balance (shares) at Dec. 31, 2020 | 32,692,561 | |||||||
Balance at Dec. 31, 2020 | 181,016 | $ (16,996) | $ 10 | 340,515 | $ (32,214) | 473 | (159,982) | $ 15,218 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of stock options (shares) | 69,360 | |||||||
Exercise of stock options | 1,181 | 1,181 | ||||||
RSUs released net of shares withheld for tax settlement (shares) | 97,766 | |||||||
RSUs released net of shares withheld for tax settlement | (2,185) | (2,185) | ||||||
Induced conversion of convertible senior notes (shares) | 1,277,731 | |||||||
Induced conversion of convertible senior notes | 477 | 477 | ||||||
Issuance of capped calls | (15,460) | (15,460) | ||||||
Employee stock-based compensation expense | 6,862 | 6,862 | ||||||
Net loss | (7,633) | (7,633) | ||||||
Other comprehensive gain (loss) | (234) | (234) | ||||||
Balance (shares) at Mar. 31, 2021 | 34,137,418 | |||||||
Balance at Mar. 31, 2021 | $ 147,028 | $ 10 | 299,176 | 239 | (152,397) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate202006Member | |||||||
Balance (shares) at Dec. 31, 2020 | 32,692,561 | |||||||
Balance at Dec. 31, 2020 | $ 181,016 | $ (16,996) | $ 10 | 340,515 | $ (32,214) | 473 | (159,982) | $ 15,218 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (9,915) | |||||||
Other comprehensive gain (loss) | (366) | |||||||
Balance (shares) at Jun. 30, 2021 | 34,692,364 | |||||||
Balance at Jun. 30, 2021 | 141,905 | $ 10 | 296,467 | 107 | (154,679) | |||
Balance (shares) at Mar. 31, 2021 | 34,137,418 | |||||||
Balance at Mar. 31, 2021 | 147,028 | $ 10 | 299,176 | 239 | (152,397) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of stock options (shares) | 29,807 | |||||||
Exercise of stock options | 425 | 425 | ||||||
RSUs released net of shares withheld for tax settlement (shares) | 447,601 | |||||||
RSUs released net of shares withheld for tax settlement | (10,509) | (10,509) | ||||||
Common stock issued under employee stock purchase plan (shares) | 77,538 | |||||||
Common stock issued under employee stock purchase plan | 2,146 | 2,146 | ||||||
Issuance of capped calls | (1,894) | (1,894) | ||||||
Employee stock-based compensation expense | 7,123 | 7,123 | ||||||
Net loss | (2,282) | (2,282) | ||||||
Other comprehensive gain (loss) | (132) | (132) | ||||||
Balance (shares) at Jun. 30, 2021 | 34,692,364 | |||||||
Balance at Jun. 30, 2021 | $ 141,905 | $ 10 | $ 296,467 | $ 107 | $ (154,679) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (9,915) | $ (13,938) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 4,587 | 2,801 |
Stock-based compensation expense | 13,985 | 12,207 |
Amortization of debt discount and issuance costs | 617 | 3,504 |
Non-cash lease expense | 1,203 | 1,183 |
Non-cash impact of induced premium | 2,059 | 0 |
Other | 1,588 | 142 |
Changes in operating assets and liabilities, net of effect of acquisitions: | ||
Accounts receivable | 9,963 | 14,293 |
Other receivables | (89) | (275) |
Inventories | 1,436 | (3,866) |
Prepaid expenses and other assets | (1,060) | (607) |
Deferred commissions | (2,561) | (640) |
Accounts payable | (535) | (1,035) |
Accrued payroll and other liabilities | (5,298) | 1,176 |
Change in lease-related performance obligations | (580) | (623) |
Deferred revenue | (3,952) | (7,461) |
Net cash provided by operating activities | 11,448 | 6,861 |
Cash flows from investing activities | ||
Payment for property and equipment | (853) | (1,427) |
Business acquisitions, net of cash and restricted cash acquired | (35,397) | 0 |
Purchase of short-term investments | (127,240) | (86,300) |
Maturities of short-term investments | 69,430 | 72,137 |
Sales of short-term investments | 0 | 14,393 |
Net cash used in investing activities | (94,060) | (1,197) |
Cash flows from financing activities | ||
Cash from lease-related performance obligations | 198 | 306 |
Repayment of borrowings | (102,946) | 0 |
Proceeds from issuance of convertible senior notes, net of issuance costs | 217,758 | 0 |
Payment for purchase of capped calls | (17,354) | 0 |
Proceeds from issuance of common stock from the employee stock purchase plan | 2,146 | 1,966 |
Proceeds from exercise of stock options | 1,606 | 1,325 |
Tax withholdings paid on behalf of employees for net share settlement | (12,694) | (5,579) |
Net cash provided by (used in) financing activities | 88,714 | (1,982) |
Net increase in cash, cash equivalents and restricted cash | 6,102 | 3,682 |
Cash, cash equivalents and restricted cash at beginning of period | 34,976 | 25,704 |
Cash, cash equivalents and restricted cash at end of period | 41,078 | 29,386 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Costs related to the convertible senior notes in accounts payable and accrued liabilities | 98 | 0 |
Operating lease right-of-use assets exchanged for lease obligations, net of acquired leases | 731 | |
Convertible senior notes converted to equity | 477 | 0 |
Property and equipment in accounts payable and accrued liabilities | 259 | 222 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||
Cash and cash equivalents | 40,480 | 29,386 |
Restricted cash included in other long-term assets | 598 | 0 |
Total cash, cash equivalents and restricted cash | $ 41,078 | $ 29,386 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
The Company and Summary of Significant Accounting Policies | The Company and Summary of Significant Accounting Policies Organization and Business Vocera Communications, Inc. and its subsidiaries (collectively, the "Company" or "Vocera") is a provider of secure, integrated, intelligent communication and clinical workflow solutions, focused on empowering mobile workers in healthcare, hospitality, retail, energy, education and other mission-critical mobile work environments, in the United States and internationally. The significant majority of the Company's business is generated from sales of its solutions in the healthcare market to help its customers improve quality of care, safety, patient and staff experience and increase operational efficiency. The Vocera communication and collaboration solution includes: an intelligent enterprise software platform; a lightweight, wearable, voice-controlled communication Badge and Smartbadge; and smartphone applications. The solution enables users to simply connect instantly with other staff by name, function or group name of the desired recipient. It also delivers HIPAA-compliant secure text messages, alerts and alarms directly to a range of smartphones or the Smartbadge both inside and outside the hospital, replacing legacy pagers and in-building wireless phones. The Company was incorporated in Delaware on February 16, 2000. The Company formed wholly-owned subsidiaries Vocera Communications UK Ltd and Vocera Communications Australia Pty Ltd. in 2005, Vocera Canada, Ltd. in 2010, Vocera Communications India Private Ltd. in 2013, Vocera Communications Middle East FZ LLC in 2014, acquired Extension, LLC in 2016, EASE Applications, LLC ("EASE") in 2020, and PatientSafe Solutions, Inc. (“PatientSafe”) in 2021. Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission, and include the accounts of Vocera and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The year-end condensed consolidated balance sheet data was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim consolidated financial information. The results for the quarter presented are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any other interim period or any other future year. Except for the change in certain accounting policies upon adoption of the accounting standards described below, there have been no material changes to the Company’s significant accounting policies compared to the accounting policies presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. The estimates include, but are not limited to, revenue recognition, warranty reserves, accounts receivable reserves, inventory reserves, bonuses, goodwill and intangible assets, stock-based compensation expense, provisions for income taxes, contingent consideration and contingencies. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations. Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. These reclassifications had no impact on the previously reported net loss or accumulated deficit. Recently Adopted Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06 related to the accounting for debt with conversion features. The amendments in this update simplify the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update also amends the guidance for the derivatives scope |
Revenue, Deferred Revenue and D
Revenue, Deferred Revenue and Deferred Commissions | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Deferred Revenue and Deferred Commissions | Revenue, Deferred Revenue and Deferred Commissions Disaggregation of Revenue A typical sales arrangement involves multiple arrangements, such as sales of the Company’s proprietary communication device ("Vocera Badge"), perpetual software licenses, professional services, cloud-based subscription software, and support services which entitles customers to unspecified upgrades, patch releases and telephone-based support. The following table depicts the disaggregation of revenue according to revenue type and is consistent with how the Company evaluates its financial performance: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Product revenue Device $ 16,256 $ 17,100 $ 31,529 $ 31,003 Software 12,088 6,851 19,423 10,798 Total product 28,344 23,951 50,952 41,801 Service revenue Subscription and support 22,641 18,994 43,600 37,063 Professional services and training 5,195 4,402 10,296 9,156 Total service 27,836 23,396 53,896 46,219 Total revenue $ 56,180 $ 47,347 $ 104,848 $ 88,020 Contract balances The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable are recorded at the invoiced amount and in the period the Company delivers goods or provides services or when the Company’s right to consideration is unconditional. Payment terms on invoiced amounts are typically 30 days. The balance of accounts receivable, net of allowance for doubtful accounts, as of June 30, 2021 and December 31, 2020 is presented in the accompanying condensed consolidated balance sheets. In situations where revenue recognition occurs before invoicing, an unbilled receivable is created, which represents a contract asset. As of June 30, 2021 and December 31, 2020, contract assets totaling $4.6 million and $4.2 million, respectively, were included in other receivables in the condensed consolidated balance sheets. Costs to obtain and fulfill a contract The Company capitalizes certain incremental contract acquisition costs consisting primarily of commissions paid and the related payroll taxes when customer contracts are signed. The Company determines whether costs should be deferred based on its sales compensation plans, if the commissions are incremental and would not have been incurred absent the execution of the customer contract. Sales commissions for renewals of customer contracts are not commensurate with the commissions paid for the acquisition of the initial contract given the substantive difference in commission rates in proportion to their respective contract values. Commissions paid upon the initial acquisition of a contract are amortized over the estimated period of benefit, which may exceed the term of the initial contract. Accordingly, amortization of deferred costs is recognized on a systematic basis that is consistent with the pattern of revenue recognition allocated to each performance obligation and is included in sales and marketing expense in the consolidated statements of operations. The Company determines its estimated period of benefit, up to five years, by evaluating the expected renewals of its customer contracts, the duration of its relationships with its customers and other factors. Deferred costs are periodically reviewed for impairment. In accordance with Topic 340, an entity may elect a practical expedient that allows the entity to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. The Company has elected this practical expedient and recognizes costs paid to obtain contracts as expense when incurred. Changes in the balance of total deferred commissions (contract asset) during the three and six months ended June 30, 2021 are as follows: (in thousands) March 31, 2021 Additions Commissions Recognized June 30, 2021 Deferred commissions $ 12,713 $ 4,452 $ (2,311) $ 14,854 (in thousands) December 31, 2020 Additions Commissions Recognized June 30, 2021 Deferred commissions $ 12,293 $ 6,787 $ (4,226) $ 14,854 Of the $14.9 million total deferred commissions balance as of June 30, 2021, the Company expects to recognize approximately 39% as commission expense over the next 12 months and the remainder thereafter. Deferred revenue The Company records deferred revenue when cash payments are received in advance of the performance under the contract. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the consolidated balance sheet date. Changes in the balance of total deferred revenue (contract liability) during the three and six months ended June 30, 2021 are as follows: (in thousands) March 31, 2021 Additions Revenue Recognized June 30, 2021 Deferred revenue $ 60,136 $ 27,433 $ (25,014) $ 62,555 (in thousands) December 31, 2020 Additions Revenue Recognized June 30, 2021 Deferred revenue $ 64,733 $ 45,350 $ (47,528) $ 62,555 Revenue recognized during the three and six months ended June 30, 2021 from deferred revenue balances at the beginning of the period was $22.6 million and $43.7 million, respectively. Revenue recognized during the three and six months ended June 30, 2020 from deferred revenue balances at the beginning of the period was $19.5 million and $34.2 million, respectively. The “contracted but not recognized” performance obligations represent the Company’s deferred revenue and non-cancelable backlog amounts. This balance as of June 30, 2021 was $179.0 million, of which the Company expects to recognize approximately 66% as revenue over the next 12 months and the remainder thereafter. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s cash, cash equivalents and short-term investments are carried at their fair values with any differences from their amortized cost recorded in equity as unrealized gains (losses) on marketable securities. As a basis for determining the fair value of its assets and liabilities, the Company follows a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. During the six months ended June 30, 2021, there have been no transfers between Level 1 and Level 2 fair value instruments and no transfers out of Level 3. The Company’s money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The fair value of the Company’s Level 2 fixed income securities is obtained from independent pricing services, which may use quoted market prices for identical or comparable instruments or model-driven valuations using observable market data or other inputs, corroborated by observable market data. In addition to its cash, cash equivalents and short-term investments, the Company measures the fair value of its Convertible Senior Notes on a quarterly basis for disclosure purposes. The Company considers the fair value of the Convertible Senior Notes at June 30, 2021 to be a Level 2 measurement due to limited trading activity of the Convertible Senior Notes. Refer to Note 8 to the condensed consolidated financial statements for further information. The agreement for the acquisition of EASE includes contingent payments to the owners of EASE, payable based on achievement of post-acquisition financial metrics. This contingent consideration is a Level 3 fair value measurement and the valuation of the Company’s contingent consideration obligation was estimated as the present value of total expected contingent consideration payments which are determined using a Monte Carlo simulation. This analysis reflects the contractual terms of the purchase agreements and utilizes assumptions with regard to future sales, probabilities of achieving such future sales, the likelihood and timing of expected payments and a discount rate. Significant increases with respect to assumptions as to future sales and probabilities of achieving such future sales would result in a higher fair value measurement, while an increase in the discount rate would result in a lower fair value measurement. The unobservable inputs in the valuation include revenue volatility of 11%, a risk-free rate of 2.50%, and the amounts are expected to be paid in the second quarters of 2022 and 2023. The fair value adjustment for the contingent consideration of $(1.7) million and $(1.3) million for the three and six months ended June 30, 2021, respectively, was recorded as other income in the condensed consolidated statements of operations. The Company’s assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of June 30, 2021 and December 31, 2020, are summarized as follows (in thousands): June 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Money market funds $ 15,471 $ — $ — $ 15,471 $ 363 $ — $ — $ 363 Commercial paper — 62,960 — 62,960 — 21,950 — 21,950 U.S. Treasury securities — — — — — 6,000 — 6,000 Corporate debt securities — 188,468 — 188,468 — 173,277 — 173,277 Total assets measured at fair value $ 15,471 $ 251,428 $ — $ 266,899 $ 363 $ 201,227 $ — $ 201,590 Liabilities Contingent consideration $ — $ — $ 1,661 1,661 $ — $ — $ 2,959 $ 2,959 Total liabilities measured at fair value $ — $ — $ 1,661 $ 1,661 $ — $ — $ 2,959 $ 2,959 The financial accounts that are not subject to recurring fair value measurement include trade and other receivables, prepaid expenses and other current assets, total current liabilities and deferred revenues, both current and long-term. Due to their short maturities, the carrying amounts of these accounts approximate their fair values. The table below provides a roll-forward of the fair value of the Company's liabilities that use significant unobservable inputs (Level 3) (in thousands). Six months ended June 30, 2021 Beginning balance $ 2,959 Fair value adjustment for contingent consideration included in earnings $ (1,298) Ending balance $ 1,661 |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 6 Months Ended |
Jun. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Short-Term Investments | Cash, Cash Equivalents and Short-Term Investments The following tables present cash, cash equivalents and short-term investments (in thousands) as of June 30, 2021 and December 31, 2020: As of June 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Cash $ 25,009 $ — $ — $ 25,009 Money market funds 15,471 — — 15,471 Total cash and cash equivalents 40,480 — — 40,480 Short-term investments: Commercial papers 62,956 6 (2) 62,960 Corporate debt securities 188,365 182 (79) 188,468 Total short-term investments 251,321 188 (81) 251,428 Total cash, cash equivalents and short-term investments $ 291,801 $ 188 $ (81) $ 291,908 As of December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Cash $ 28,613 $ — $ — $ 28,613 Money market funds 363 — — 363 U.S. government agency securities 6,000 — — 6,000 Total cash and cash equivalents 34,976 — — 34,976 Short-term investments: Commercial papers 21,961 — (11) 21,950 Corporate debt securities 172,768 543 (34) 173,277 Total short-term investments 194,729 543 (45) 195,227 Total cash, cash equivalents and short-term investments $ 229,705 $ 543 $ (45) $ 230,203 The Company has determined that no credit losses related to marketable securities were required as of June 30, 2021 and December 31, 2020. The Company’s conclusion is based on the high credit quality of the securities, their short remaining maturity and the Company’s intent and ability to hold such loss securities until maturity. Classification of the cash, cash equivalents and short-term investments by contractual maturity was as follows: (in thousands) One year or shorter Between 1 and 2 years Total Balances as of June 30, 2021 Cash and cash equivalents (1) $ 40,480 $ — $ 40,480 Short-term investments 201,890 49,538 251,428 Cash, cash equivalents and short-term investments $ 242,370 $ 49,538 $ 291,908 Balances as of December 31, 2020 Cash and cash equivalents (1) $ 34,976 $ — $ 34,976 Short-term investments 141,582 53,645 195,227 Cash, cash equivalents and short-term investments $ 176,558 $ 53,645 $ 230,203 (1) Includes demand deposits and other cash, money market funds and other cash equivalent securities, all with 0-90 day maturity at purchase. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Numerator: Net loss $ (2,282) $ (3,468) $ (9,915) $ (13,938) Denominator: Weighted-average shares used to compute net loss per common share - basic and diluted 34,485 32,152 33,790 31,945 Net loss per share Basic and diluted $ (0.07) $ (0.11) $ (0.29) $ (0.44) The following securities were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Options to purchase common stock, including ESPP 213 517 253 568 Restricted stock units and performance stock units 1,831 2,125 1,967 1,880 Convertible senior notes (if-converted) 4,998 — 4,795 — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill As of June 30, 2021 and December 31, 2020, the Company had $94.8 million and $69.2 million of goodwill, respectively. The addition to goodwill during the six months ended June 30, 2021 of $25.7 million was based on the purchase price allocations of the acquisition completed during the three months ended June 30, 2021 (see Note 12). As of June 30, 2021, there were no changes in circumstances indicating that the carrying values of goodwill or acquired intangibles may not be recoverable. The changes in the carrying amount of goodwill are as follows (in thousands): Balance at December 31, 2020 $69,168 Acquired in acquisition (Note 12) 25,678 Balance at June 30, 2021 $94,846 Intangible Assets The fair values for acquired intangible assets were determined by management with consideration of, in part, valuations performed by independent valuation specialists. Acquisition-related intangible assets are amortized either straight-line, or over the life of the assets on a basis that resembles the economic benefit of the assets. This assumption results in amortization that is higher in earlier periods of the useful life. The estimated useful lives and carrying value of acquired intangible assets are as follows: June 30, 2021 December 31, 2020 (in thousands) Weighted Average Gross Accumulated Net Gross Accumulated Net Developed technology 3.3 $ 17,620 $ (10,992) $ 6,628 $ 12,360 $ (10,255) $ 2,105 Customer relationships 8.0 19,640 (8,073) 11,567 16,350 (7,143) 9,207 Backlog 3.8 5,950 (1,708) 4,242 2,240 (1,343) 897 Trademarks 3.0 1,770 (1,301) 469 1,770 (1,191) 579 Intangible assets, net book value $ 44,980 $ (22,074) $ 22,906 $ 32,720 $ (19,932) $ 12,788 Amortization expense was $1.3 million and $0.3 million for the three months ended June 30, 2021 and 2020, respectively. Amortization expense was $2.1 million and $0.6 million for the six months ended June 30, 2021 and 2020, respectively. Amortization of acquired intangible assets is reflected in the cost of revenue for developed technology and backlog and in operating expenses for the other intangible assets. The estimated future amortization of existing acquired intangible assets as of June 30, 2021 was as follows: (in thousands) Future amortization 2021 (remaining six months) $ 3,235 2022 6,057 2023 5,537 2024 3,506 2025 1,409 2026 1,090 Thereafter 2,072 Future amortization expense $ 22,906 |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2021 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Balance Sheet Components Inventories (in thousands) June 30, December 31, Raw materials $ 356 $ 462 Finished goods 8,246 9,697 Total inventories $ 8,602 $ 10,159 Property and equipment, net (in thousands) June 30, December 31, Computer equipment and software $ 15,865 $ 15,912 Furniture, fixtures and equipment 2,760 2,570 Leasehold improvements 5,762 5,306 Manufacturing tools and equipment 2,758 2,506 Construction in process 210 629 Property and equipment, at cost 27,355 26,923 Less: Accumulated depreciation (20,507) (18,820) Property and equipment, net $ 6,848 $ 8,103 Depreciation and amortization expense for property and equipment was $1.3 million and $1.2 million for the three months ended June 30, 2021 and 2020, respectively. Depreciation and amortization expense for property and equipment was $2.4 million and $2.2 million for the six months ended June 30, 2021 and 2020, respectively. Net investment in sales-type leases The Company has sales-type leases with terms of 3 to 4 years. Sales-type lease receivables are collateralized by the underlying equipment. The components of the Company’s net investment in sales-type leases are as follows: (in thousands) June 30, December 31, Minimum payments to be received on sales-type leases $ 1,101 $ 1,440 Less: Unearned interest income and executory revenue portion (540) (731) Net investment in sales-type leases 561 709 Less: Current portion (316) (360) Non-current net investment in sales-type leases $ 245 $ 349 Sales-type lease activity recognized in the condensed consolidated statement of operations are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Lease revenue $ 500 $ 1,118 $ 919 $ 1,553 Less: Cost of lease shipments (32) (165) (40) (175) Gross profit $ 468 $ 953 $ 879 $ 1,378 Interest income (expense), net on lease receivable $ 1 $ (6) $ 2 $ (12) Initial direct cost incurred $ 22 $ 60 $ 39 $ 83 There were no allowances for doubtful accounts on these leases as of June 30, 2021 and December 31, 2020. There is no guaranteed or unguaranteed residual value on the leased equipment. The current and non-current net investments in sales-type leases are reported as components of the condensed consolidated balance sheet captions “other receivables” and “other long-term assets,” respectively. The minimum payments expected to be received for future years under sales-type leases as of June 30, 2021 were as follows: (in thousands) Future lease payments 2021 (remaining six months) $ 361 2022 522 2023 185 2024 33 Total $ 1,101 Accrued payroll and other current liabilities (in thousands) June 30, December 31, Payroll and related expenses $ 11,907 $ 9,043 Accrued payables 2,985 3,160 Operating lease liabilities, current portion 3,627 2,529 Lease financing, current portion 1,097 1,034 Product warranty 433 453 Customer prepayments 1,472 4,292 Sales and use tax payable 513 476 Other taxes payable 2,210 1,832 Other 513 376 Total accrued payroll and other current liabilities $ 24,757 $ 23,195 The changes in the Company’s product warranty reserve are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Warranty balance at the beginning of the period $ 462 $ 440 $ 453 $ 420 Warranty expense accrued for shipments during the period 80 115 150 223 Changes in estimate related to pre-existing warranties (94) 40 (126) 9 Warranty settlements made (15) (74) (44) (131) Total product warranty $ 433 $ 521 $ 433 $ 521 Leases The Company has operating leases for office space at its headquarters and subsidiaries under non-cancelable operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet; lease expense for these leases is recognized on a straight-line basis over the lease term. The Company determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, which are accounted for as a single lease component. The Company’s leases have remaining lease terms of approximately nine months to approximately eight years. Operating lease cost, including short-term operating leases was $0.8 million and $0.7 million for the three months ended June 30, 2021 and 2020, respectively and $1.5 million and $1.4 million for the six months ended June 30, 2021 and 2020, respectively. Supplemental balance sheet information related to leases was as follows: (in thousands) June 30, Other long-term assets $ 4,908 Accrued payroll and other current liabilities 3,627 Other long-term liabilities 2,692 Total operating lease liabilities $ 6,319 Other information related to leases was as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities $ 1,005 $ 732 $ 1,766 1,444 Right-of-use assets obtained in exchange for lease obligations $ 1,423 $ 122 $ 2,096 122 Weighted average remaining lease term 2.13 years 2.46 years 2.13 years 2.46 years Weighted average discount rate 8 % 8 % 8 % 8 % Maturities of lease liabilities as of June 30, 2021 are as follows: (in thousands) Operating leases 2021 (remaining six months) $ 2,073 2022 3,096 2023 908 2024 523 2025 175 2026 74 Total maturities of lease liabilities 6,849 Less imputed interest (530) Total $ 6,319 During the three months ended June 30, 2021, the Company entered into a new lease for its headquarters with lease payments totaling $15.5 million. The Company will have access to the facility starting in the third quarter of 2021 and the lease goes through the second quarter of 2029. |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes Convertible Senior Notes due 2026 In March 2021, the Company issued $200.0 million aggregate principal amount of its 0.50% Convertible Senior Notes, due 2026 (the “2026 Notes”). The 2026 Notes are unsecured, unsubordinated obligations of the Company and bear interest at a fixed rate of 0.50% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, commencing on September 15, 2021. The 2026 Notes mature on September 15, 2026, unless converted, redeemed or repurchased in accordance with their terms prior to such date. The Company granted the initial purchasers an overallotment option under the purchase agreement to purchase up to an additional $30.0 million aggregate principal amount of the 2026 Notes to cover overallotments within a 30-day period. The purchasers partially exercised the overallotment option in April 2021 and the Company issued an additional $24.5 million of the 2026 Notes. The Company may not redeem the 2026 Notes prior to March 20, 2024. The Company may redeem for cash all or any portion of the 2026 Notes (subject to the partial redemption limitation (as defined in the Indenture)), at its option, on or after March 20, 2024 if the last reported sale price of common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides a redemption notice at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The 2026 Notes are convertible into cash, shares of Company’s common stock or a combination of cash and shares of common stock, at the Company’s election, at an initial conversion rate of 16.6272 shares of common stock per $1,000 principal amount of the 2026 Notes, which is equal to an initial conversion price of approximately $60.14 per share of common stock. The 2026 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding June 15, 2026, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the 2026 Notes on each applicable trading day (2) during the five business day period after any ten consecutive trading day period in which the trading price per $1,000 principal amount of the 2026 Notes for each trading day of that ten day consecutive trading day period was less than 98% of the product of the last reported sale price of common stock and the conversion rate of the 2026 Notes on such trading day; (3) if the Company calls any or all of the 2026 Notes for redemption, at any time prior to the close of business on the second scheduled trading day prior to the applicable redemption date; or (4) upon the occurrence of specified corporate events. On or after June 15, 2026, holders of the 2026 Notes may convert all or any portion of their 2026 Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, regardless of the foregoing circumstances. If a fundamental change occurs (as set forth in the indenture governing the 2026 Notes), each holder of the 2026 Note shall have the right, at such holder’s option, to require the Company to repurchase for cash all of such their Notes, or any portion of the principal amount, at a repurchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. During the six months ended June 30, 2021, the conditions allowing holders of the 2026 Notes to convert have not been met and there were no changes to the initial conversion price of the 2026 Notes. The 2026 Notes are not convertible during the six months ended June 30, 2021 and are classified as long-term debt. In accounting for the 2026 Notes after adoption of ASU 2020-06, the 2026 Notes are accounted for as a single liability. The carrying amount of the liability component for 2026 Notes is $218.0 million as of June 30, 2021, with principal of $224.5 million, net of unamortized issuance costs of $6.5 million. The costs related to the 2026 Notes are being amortized to interest expense over the contractual term of the 2026 Notes at an effective interest rate of 1.05%. The 2026 Notes and related interest expense consist of the following: (in thousands) June 30, Liability: Principal $ 224,500 Unamortized issuance costs (6,480) Net carrying amount $ 218,020 Three months ended June 30, Six months ended June 30, (in thousands) 2021 2021 Contractual interest expense $ 276 $ 337 Amortization of issuance costs 295 359 Total interest expense $ 571 $ 696 2026 Capped Calls In connection with the pricing of the 2026 Notes, the Company entered into privately negotiated capped call transactions with certain counterparties (the “2026 Capped Calls”). The 2026 Capped Calls have an initial strike price of $60.14 per share, subject to certain adjustments, which correspond to the initial conversion price of the 2026 Notes. The 2026 Capped Calls have initial cap prices of $77.96 per share, subject to certain adjustments. Conditions that cause adjustments to the initial strike price of the 2026 Capped Calls mirror conditions that result in corresponding adjustments for the 2026 Notes. The 2026 Capped Calls are generally intended to reduce or offset the potential dilution to the Company’s common stock upon any conversion of the 2026 Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. For accounting purposes, the 2026 Capped Calls are separate transactions, and not part of the terms of the 2026 Notes. As these transactions meet certain accounting criteria, the 2026 Capped Calls are recorded in stockholders' equity at an amount of $17.4 million and are not accounted for as derivatives. In connection with the partial exercise of the overallotment option and the issuance by the Company of $24.5 million of 2026 Notes on April 5, 2021, the Company entered into $1.9 million of additional privately negotiated capped calls with the same terms as the initial capped calls. Convertible Senior Notes due 2023 In May 2018, the Company issued $143.8 million aggregate principal amount of 1.50% Convertible Senior Notes due May 15, 2023 (the “2023 Notes”), including $18.8 million aggregate principal amount of such notes pursuant to the exercise in full of options granted to the initial purchasers. The 2023 Notes are unsecured, unsubordinated obligations and bear interest at a fixed rate of 1.50% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, commencing on November 15, 2018. The total net proceeds from the offering, after deducting initial purchase discounts and estimated debt issuance costs, were approximately $138.9 million. In the first quarter of 2021, the Company used part of the net proceeds from the issuance of the 2026 Notes to retire $102.9 million aggregate principal amount of the 2023 Notes in privately-negotiated transactions for consideration of $102.9 million in cash and 1,277,731 shares of the Company’s common stock (the "2023 Note Repurchase Transactions"). The Company separately settled the accrued interest of approximately $0.5 million associated with the retired 2023 Notes in cash. Out of the common stock issued, the Company provided additional issuance of 46,216 shares of the Company’s common stock not provided for under the original conversion terms of the 2023 Notes to induce the holders of the 2023 Notes to agree to the retirement. The Company used cash to settle the principal of the retired 2023 Notes and issued common stock to settle the conversion spread. The 2023 Note Repurchase Transactions met the requirements to be accounted for as an induced conversion. Under the induced conversion guidance, the total fair value of the additional cash and common stock issued to induce conversion is recognized as an inducement expense. The remaining cash and common stock consideration issued under the original terms of the 2023 Notes are accounted for under the general conversion accounting guidance. The 2023 Note Repurchase Transactions resulted in a $2.1 million inducement loss equal to the fair value of the additional common stock issued for inducement and the difference of approximately $1.6 million between the carrying amount of the 2023 Notes retired, including unamortized debt issuance cost of $1.6 million, and the cash consideration paid and the par amount of the common stock issued was recorded in additional paid-in capital. Each $1,000 principal amount of the remaining 2023 Notes is initially convertible into 31.0073 shares of the Company’s common stock (the “2023 Notes Conversion Option”), which is equivalent to an initial conversion price of approximately $32.25 per share, subject to adjustment upon the occurrence of specified events. The 2023 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding February 15, 2023, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2018 (and only during such calendar quarter), if the last reported sale price of the Company common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the 2023 Notes on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period in which the trading price per $1,000 principal amount of the 2023 Notes for each day of that ten day consecutive trading day period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate of the 2023 Notes on such trading day; or (3) upon the occurrence of specified corporate events (as set forth in the indenture governing the 2023 Notes). On or after February 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2023 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. If certain specified fundamental changes occur (as set forth in the indenture governing the 2023 Notes) prior to the maturity date, holders of the 2023 Notes may require the Company to repurchase for cash all or any portion of their Notes at a repurchase price equal to 100% of the principal amount of the 2023 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events occur prior to the applicable maturity date, the Company will increase the conversion rate for a holder who elects to convert their notes in connection with such a corporate event in certain circumstances. During the six months ended June 30, 2021, the conditions allowing holders of the 2023 Notes to convert have not been met and there were no changes to the initial conversion price of the 2023 Notes. The 2023 Notes are not convertible during the six months ended June 30, 2021 and are classified as long-term debt. Prior to the adoption of the ASU 2020-06 on January 1, 2021 and in accounting for the issuance of the 2023 Notes, the 2023 Notes were separated into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated conversion feature. The carrying amount of the equity component representing the 2023 Conversion Option was $33.4 million and was determined by deducting the fair value of the liability components from the par value of the 2023 Notes. The equity component was recorded in additional paid-in-capital and are not re-measured as long as they continue to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (the “Debt Discount”) was amortized to interest expense over the contractual term of the 2023 Notes at an effective interest rate of 7.6%. Prior to the adoption of the ASU 2020-06 on January 1, 2021 and in accounting for the debt issuance costs of $4.9 million related to the 2023 Notes, the Company allocated the total amount incurred to the liability and equity components of the 2023 Notes based on their relative values. Issuance costs attributable to the liability component were $3.8 million and were amortized to interest expense using the effective interest method over the contractual term of the 2023 Notes. Issuance costs attributable to the equity components were netted with the equity component in additional paid-in-capital. The Company elected to early adopt ASU 2020-06 as of January 1, 2021 based on a modified retrospective transition method. Under such transition, prior-period information has not been retrospectively adjusted. In accounting for the 2023 Notes after adoption of ASU 2020-06, the 2023 Notes are accounted for as a single liability. The carrying amount of the liability component for 2023 Notes is $40.3 million as of June 30, 2021, with principal of $40.8 million, net of debt issuance cost of $0.5 million. The issuance costs related to the 2023 Notes are being amortized to interest expense over the contractual term of the 2023 Notes at an effective interest rate 2.19%. The 2023 Notes and related interest expense consist of the following: (in thousands) June 30, December 31, Liability: Principal $ 40,804 $ 143,750 Unamortized debt discount — (17,411) Unamortized issuance costs (539) (1,963) Net carrying amount $ 40,265 $ 124,376 Stockholders’ equity: Debt discount for conversion option $ — $ 33,350 Issuance costs — (1,136) Net carrying amount $ — $ 32,214 Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Contractual interest expense $ 153 $ 539 $ 190 $ 1,078 Amortization of debt discount — 1,590 — 3,149 Amortization of issuance costs 70 179 88 355 Total interest expense $ 223 $ 2,308 $ 278 $ 4,582 The total estimated fair value of the 2023 and 2026 Notes (“the Notes”) as of June 30, 2021 was approximately $270.0 million. The fair value was determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. The fair value of the Notes is primarily affected by the trading price of the Company’s common stock and market interest rates. Based on the closing price of the Company’s common stock of $39.85 on June 30, 2021, the if-converted value of the Notes of $199.2 million was less than their principal amount. 2023 Capped Calls In connection with the pricing of the 2023 Notes, the Company entered into privately negotiated capped call transactions with certain counterparties, the “2023 Capped Calls.” The 2023 Capped Calls entered into with the 2023 Notes are still outstanding and each have an initial strike price of approximately $32.25 per share, subject to certain adjustments, which correspond to the initial conversion price of the 2023 Notes. The 2023 Capped Calls have initial cap prices of $38.94 per share, subject to certain adjustments. The 2023 Capped Calls cover, subject to anti-dilution adjustments, approximately 4.5 million shares of the Company’s common stock. Conditions that cause adjustments to the initial strike price of the Capped Calls mirror conditions that result in corresponding adjustments for the 2023 Notes. The 2023 Capped Calls are generally intended to reduce or offset the potential dilution to the Company’s common stock upon any conversion of the 2023 Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. For accounting purposes, the 2023 Capped Calls are separate transactions, and not part of the terms of the 2023 Notes. As these transactions meet certain accounting criteria, the 2023 Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. The cost of $8.9 million incurred in connection with the 2023 Capped Calls was recorded as a reduction to additional paid-in capital. The 2023 Capped Calls were not impacted by the 2023 Note Repurchase Transactions and continue to remain outstanding. The net impact to the Company’s stockholders' equity, included in additional paid-in capital, of the above components of the 2023 Notes is as follows: (in thousands) December 31, Conversion option $ 33,350 Purchase of capped calls (8,907) Issuance costs (1,136) Total $ 23,307 Impact on Earnings Per Share Prior to the adoption of ASU 2020-06, the Company used the treasury stock method for calculating any potential dilutive effect of the conversion spread of its 2023 Notes. Under the treasury stock method, in periods when the Company reports net income, the Company is required to include the effect of additional shares that may be issued under the 2023 Notes when the price of its’ common stock exceeds the conversion price. The conversion spread on the 2023 convertible senior notes had an anti-dilutive impact during the six months ended June 30, 2020, since the average market price of the Company’s common stock during the period exceeded the initial conversion price per share for the 2023 Notes and the Company was in a net loss position. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Non-cancelable Material Commitments The Company is required to purchase unused, non-cancelable, non-returnable raw material inventory that was purchased by its contract manufacturers based on committed finished goods orders from the Company, certain long lead-time raw materials based on the Company’s forecast and current work-in-progress materials. As of June 30, 2021 and December 31, 2020, approxi mately $9.7 million an d $6.1 million, respectively, of such inventory was purchased and held by the third-party manufacturers which was subject to these purchase guarantees. Indemnifications The Company undertakes, in the ordinary course of business, to (i) defend customers and other parties from certain third-party claims associated with allegations of trade secret misappropriation, infringement of copyright, patent or other intellectual property rights, tortious damage to persons or property or breaches of certain Company obligations relating to confidentiality (e.g., safeguarding protected health information) and (ii) indemnify and hold harmless such parties from certain resulting damages, costs and other liabilities. The term of these undertakings may be perpetual and the maximum potential liability of the Company under certain of these undertakings is not determinable. Based on its historical experience, the Company believes the liability associated with these undertakings is minimal. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The Company currently has directors and officers insurance. As there has been no significant history of losses, no expense accrual has been made. Litigation From time to time, the Company may be involved in lawsuits, claims, investigations and proceedings, consisting of intellectual property, commercial, employment and other matters which arise in the ordinary course of business. The Company defends itself vigorously against any such claims. Although the outcome of these matters is currently not determinable, management expects that any losses from existing matters that are probable or reasonably possible of being incurred as a result of these matters would not be material to the financial statements as a whole. |
Stock-based Compensation and Aw
Stock-based Compensation and Awards | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation and Award | Stock-based Compensation and Awards Valuation Assumptions Compensation expense for all share-based payment awards, including stock options, restricted stock units (“RSUs”), and performance stock units (“PSUs”), is measured based on the estimated fair value of the award on the grant date over the related vesting or performance periods. We estimate the fair value of our stock-based awards as follows: Restricted Stock Units. The fair value of restricted stock units is determined based on the quoted market price of our common stock on the date of grant. Performance Stock Units. Performance stock units consist of grants of performance-based restricted stock units to certain members of executive management that vest contingent upon the achievement of pre-determined market and service conditions (referred to herein as “performance stock units”). The fair value of our performance stock units is estimated using a Monte-Carlo simulation model which is a probabilistic approach for calculating the fair value of the awards. The Monte-Carlo simulation is a statistical technique used, in this instance, to simulate future stock prices of the Company relative to constituents in the S&P 600 Health Care Equipment and Services Index. Key assumptions for the Monte-Carlo simulation model are the risk-free interest rate, expected volatility, expected dividends and correlation coefficient. Stock Options and Employee Stock Purchase Plan . The fair value of stock options and stock purchase rights granted pursuant to our equity incentive plans and our 2012 Employee Stock Purchase Plan (ESPP), respectively, is estimated using the Black-Scholes valuation model based on the multiple-award valuation method. Key assumptions of the Black-Scholes valuation model are the risk-free interest rate, expected volatility, expected term and expected dividends. The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant for the expected term of the option. Expected volatility is based on a combination of historical stock price volatility. An expected term is estimated based on historical exercise behavior, post-vesting termination patterns, options outstanding and future expected exercise behavior. Stock Option Activity The following table summarizes the combined stock option activity under the 2000 Plan, the 2006 Plan and the 2012 Plan and non-plan stock option agreements for the six months ended June 30, 2021: Options Outstanding Number of options Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value (in years) (in thousands) Outstanding at December 31, 2020 299,031 $ 15.58 2.68 $ 7,761 Options exercised (99,167) 16.20 Options canceled (9,431) 16.77 Outstanding at June 30, 2021 190,433 $ 15.19 2.22 $ 4,696 At June 30, 2021, there was no unrecognized compensation cost related to options. We did not grant any stock options during the six months ended June 30, 2021. As of June 30, 2021, there were 1,742,713 shares that remained available for future issuance of options, restricted stock units (“RSUs”) or other equity awards under the 2012 Equity Incentive Plan. Employee Stock Purchase Plan In March 2012, the Company’s 2012 Employee Stock Purchase Plan (the “ESPP”) was approved. During the six months ended June 30, 2021 employees purchased 77,538 shares of common stock at an average price of $27.68 per share. During the six months ended June 30, 2020 employees purchased 126,046 shares of common stock at an average price of $15.60 per share. As of June 30, 2021, there were 1,198,413 shares available for future issuance under the ESPP. The Company uses the Black-Scholes option-pricing model to calculate the fair value of periodic ESPP offerings on their offer date. The following assumptions were used for each respective period for the ESPP: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Expected term (in years) 0.50 0.50 0.50 0.50 Volatility 54.2% - 55% 50% - 54.14% 54.2% - 55% 50.0% - 54.14% Risk-free interest rate 0.03% - 0.12% 0.15% - 1.59% 0.03% - 0.12% 0.15% - 1.59% Dividend yield 0% 0% 0% 0% Restricted Stock Units and Performance Stock Units The Company issues RSUs and PSUs as part of its compensation plans. A summary of RSU and PSU activity for the six months ended June 30, 2021 is presented below: Restricted Stock Units and Performance Stock Units Number of shares Weighted Average Grant Date Fair Value per Share Outstanding at December 31, 2020 2,140,763 $ 25.16 Granted 708,213 38.94 Vested (879,615) 24.50 Forfeited (138,662) 27.82 Outstanding at June 30, 2021 1,830,699 $ 30.61 At June 30, 2021, there was $47.2 million of unrecognized compensation cost related to RSUs and PSUs, which is expected to be recognized over a weighted-average period of 2.01 years. During the second quarter of fiscal year 2020 the Company granted 145,877 PSUs to certain executives under the 2012 Equity Incentive Plan (the “2012 Plan”). PSUs are contingent on the achievement of our comparative market-based returns. On the date of grant, the fair value of the total shareholder return (TSR) component of the PSUs is estimated using a Monte Carlo valuation model. The PSUs will vest over a three-year performance period. The number of shares the PSU holder receives is based on the extent to which the corresponding market conditions have been achieved. For awards subject to service and market conditions, the number of shares of our stock issued pursuant to the award can range from 0% to 200% of the target amount. Compensation expense for awards with performance-based and service-based conditions is recognized over the requisite service period. These grants were reduced from shares of common stock reserved for issuance under stock option plans as if 200% of the target amount were achieved. The assumptions used to determine the fair value are level 3 fair value measurements which include unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. The assumptions used in the Monte Carlo valuation model to value the PSUs were as follows: Grant Date Grant date fair value per share $ 30.70 Expected term (in years) 3 Volatility 42.68 % Risk-free interest rate 0.20 % Dividend yield — % Allocation of Stock-Based Compensation Expense The following table presents the allocation of stock-based compensation expense: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Cost of revenue $ 1,395 $ 1,114 $ 2,479 $ 2,087 Research and development 1,233 1,023 2,233 1,989 Sales and marketing 2,432 1,961 4,757 3,821 General and administrative 2,063 2,268 4,516 4,310 Total stock-based compensation $ 7,123 $ 6,366 $ 13,985 $ 12,207 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded a $0.3 million and $0.1 million provision for income taxes for the six months ended June 30, 2021 and 2020, respectively. The provision for income taxes for the six months ended June 30, 2021 was primarily due to foreign income and withholding taxes. The expense for the six months ended June 30, 2020 was primarily due to the accretion of deferred tax liability associated with indefinite lived intangibles, taxes on international operations and state income taxes. As of June 30, 2021, the Company has provided a valuation allowance against certain federal and state deferred tax assets. Management continues to evaluate the realizability of deferred tax assets and the related valuation allowance. If management's assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income during the period in which management makes the determination. As of June 30, 2021, the statute of limitations lapsed on the FIN48 liabilities in the amount of $50 thousand. On March 11, 2021 the American Rescue Plan Act of 2021 (the “Act”) was enacted and signed into law. The Act contains several tax provisions, including expansion of employment tax credits. The Company is currently evaluating the impact of the Act on its consolidated financial statements, but does not expect the tax provisions will result in a material impact to the Company’s tax position. |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions | Business Acquisitions Acquisition of PatientSafe Solutions, Inc. On May 4, 2021, the Company acquired all of the outstanding equity interest of PatientSafe for approximately $36.0 million in cash, net of cash acquired of $0.2 million. PatientSafe provides a clinical communication and collaboration (CC&C) solution for smartphones that is engineered to run in the cloud. The solution is designed for hospitals and health systems that have invested in their electronic health record (EHR) mobile workflow software, are smartphone centric, and prefer a cloud-based CC&C solution. The solution enhances care team mobility and efficiency at the point of care through effective, reliable communication and clinical workflows. Nurses can document to the EHR while receiving filtered, prioritized alarm and task notifications. Physicians can communicate with the nurses and team members supporting their patients. Two-way communication with a hospital’s EHR system enables clinicians to complete certain documentation and manage patient-centric communication from their smartphones. Moving forward the PatientSafe solutions will be marketed and sold under the Vocera Edge brand. The following table presents the preliminary fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date: (in thousands, except useful lives) Estimated Fair Value Estimated Useful life (in years) Assets Current assets $ 1,527 Restricted cash 598 Fixed assets, net 208 Operating lease right-of-use asset 2,089 Other assets 74 Intangibles assets Customer relationships 3,290 8 Developed technology 5,260 3 Backlog 3,710 4 Goodwill 25,678 Total assets $ 42,434 Liabilities Current liabilities 3,642 Deferred revenue 1,774 Operating lease liabilities, long term 906 Other long-term liabilities 112 Total liabilities 6,434 Net assets acquired $ 36,000 The estimated fair values of identifiable intangible assets were primarily determined using discounted cash flow models. The estimation of the fair value of the intangible assets required the use of valuation techniques and entailed consideration of all the relevant factors that might affect the fair value, such as present value factors and estimates of future revenues and costs. The amortization of developed technology and backlog is recorded in "cost of revenues" for product and the amortization for the remaining intangibles is recorded in "sales and marketing" expenses on the condensed consolidated statement of operations. The excess of the acquisition consideration over the fair values of the underlying net assets acquired was recorded as goodwill. Goodwill is largely attributed to the synergy of PatientSafe’s proprietary solutions with the Company’s existing customer base, dedicated sales force and cross selling opportunities with the Company’s other solutions. Goodwill is not amortized but is instead tested for impairment at least annually or more frequently if indicators of impairment are present. The goodwill acquired as part of the acquisition is not deductible for tax purposes. The Company incurred $1.7 million of acquisition-related costs in the three months ended June 30, 2021 that were expensed as incurred. These costs are recorded as general and administrative expenses in the consolidated statement of operations. The acquisition did not result in material contributions to revenue or net loss in the condensed consolidated financial statements in the six months period ended June 30, 2021. Additionally, pro forma financial information is not provided for consolidated revenue and net income as such amounts attributable to PatientSafe were insignificant to the Company’s condensed consolidated financial statements taken as a whole. |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission, and include the accounts of Vocera and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The year-end condensed consolidated balance sheet data was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim consolidated financial information. The results for the quarter presented are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any other interim period or any other future year. Except for the change in certain accounting policies upon adoption of the accounting standards described below, there have been no material changes to the Company’s significant accounting policies compared to the accounting policies presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. The estimates include, but are not limited to, revenue recognition, warranty reserves, accounts receivable reserves, inventory reserves, bonuses, goodwill and intangible assets, stock-based compensation expense, provisions for income taxes, contingent consideration and contingencies. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations. |
Reclassifications | Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. These reclassifications had no impact on the previously reported net loss or accumulated deficit. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06 related to the accounting for debt with conversion features. The amendments in this update simplify the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update also amends the guidance for the derivatives scope |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s cash, cash equivalents and short-term investments are carried at their fair values with any differences from their amortized cost recorded in equity as unrealized gains (losses) on marketable securities. As a basis for determining the fair value of its assets and liabilities, the Company follows a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. During the six months ended June 30, 2021, there have been no transfers between Level 1 and Level 2 fair value instruments and no transfers out of Level 3. The Company’s money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The fair value of the Company’s Level 2 fixed income securities is obtained from independent pricing services, which may use quoted market prices for identical or comparable instruments or model-driven valuations using observable market data or other inputs, corroborated by observable market data. In addition to its cash, cash equivalents and short-term investments, the Company measures the fair value of its Convertible Senior Notes on a quarterly basis for disclosure purposes. The Company considers the fair value of the Convertible Senior Notes at June 30, 2021 to be a Level 2 measurement due to limited trading activity of the Convertible Senior Notes. Refer to Note 8 to the condensed consolidated financial statements for further information. |
Goodwill and Intangible Assets | Goodwill As of June 30, 2021 and December 31, 2020, the Company had $94.8 million and $69.2 million of goodwill, respectively. The addition to goodwill during the six months ended June 30, 2021 of $25.7 million was based on the purchase price allocations of the acquisition completed during the three months ended June 30, 2021 (see Note 12). As of June 30, 2021, there were no changes in circumstances indicating that the carrying values of goodwill or acquired intangibles may not be recoverable. |
Non-cancelable Material Commitments | Non-cancelable Material CommitmentsThe Company is required to purchase unused, non-cancelable, non-returnable raw material inventory that was purchased by its contract manufacturers based on committed finished goods orders from the Company, certain long lead-time raw materials based on the Company’s forecast and current work-in-progress materials. |
Revenue, Deferred Revenue and_2
Revenue, Deferred Revenue and Deferred Commissions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue A typical sales arrangement involves multiple arrangements, such as sales of the Company’s proprietary communication device ("Vocera Badge"), perpetual software licenses, professional services, cloud-based subscription software, and support services which entitles customers to unspecified upgrades, patch releases and telephone-based support. The following table depicts the disaggregation of revenue according to revenue type and is consistent with how the Company evaluates its financial performance: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Product revenue Device $ 16,256 $ 17,100 $ 31,529 $ 31,003 Software 12,088 6,851 19,423 10,798 Total product 28,344 23,951 50,952 41,801 Service revenue Subscription and support 22,641 18,994 43,600 37,063 Professional services and training 5,195 4,402 10,296 9,156 Total service 27,836 23,396 53,896 46,219 Total revenue $ 56,180 $ 47,347 $ 104,848 $ 88,020 |
Deferred Commissions and Revenue | Changes in the balance of total deferred commissions (contract asset) during the three and six months ended June 30, 2021 are as follows: (in thousands) March 31, 2021 Additions Commissions Recognized June 30, 2021 Deferred commissions $ 12,713 $ 4,452 $ (2,311) $ 14,854 (in thousands) December 31, 2020 Additions Commissions Recognized June 30, 2021 Deferred commissions $ 12,293 $ 6,787 $ (4,226) $ 14,854 (in thousands) March 31, 2021 Additions Revenue Recognized June 30, 2021 Deferred revenue $ 60,136 $ 27,433 $ (25,014) $ 62,555 (in thousands) December 31, 2020 Additions Revenue Recognized June 30, 2021 Deferred revenue $ 64,733 $ 45,350 $ (47,528) $ 62,555 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The Company’s assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of June 30, 2021 and December 31, 2020, are summarized as follows (in thousands): June 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Money market funds $ 15,471 $ — $ — $ 15,471 $ 363 $ — $ — $ 363 Commercial paper — 62,960 — 62,960 — 21,950 — 21,950 U.S. Treasury securities — — — — — 6,000 — 6,000 Corporate debt securities — 188,468 — 188,468 — 173,277 — 173,277 Total assets measured at fair value $ 15,471 $ 251,428 $ — $ 266,899 $ 363 $ 201,227 $ — $ 201,590 Liabilities Contingent consideration $ — $ — $ 1,661 1,661 $ — $ — $ 2,959 $ 2,959 Total liabilities measured at fair value $ — $ — $ 1,661 $ 1,661 $ — $ — $ 2,959 $ 2,959 |
Roll-Forward of Fair Value Of Level 3 Liabilities | The table below provides a roll-forward of the fair value of the Company's liabilities that use significant unobservable inputs (Level 3) (in thousands). Six months ended June 30, 2021 Beginning balance $ 2,959 Fair value adjustment for contingent consideration included in earnings $ (1,298) Ending balance $ 1,661 |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents and Short-Term Investments | The following tables present cash, cash equivalents and short-term investments (in thousands) as of June 30, 2021 and December 31, 2020: As of June 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Cash $ 25,009 $ — $ — $ 25,009 Money market funds 15,471 — — 15,471 Total cash and cash equivalents 40,480 — — 40,480 Short-term investments: Commercial papers 62,956 6 (2) 62,960 Corporate debt securities 188,365 182 (79) 188,468 Total short-term investments 251,321 188 (81) 251,428 Total cash, cash equivalents and short-term investments $ 291,801 $ 188 $ (81) $ 291,908 As of December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Cash $ 28,613 $ — $ — $ 28,613 Money market funds 363 — — 363 U.S. government agency securities 6,000 — — 6,000 Total cash and cash equivalents 34,976 — — 34,976 Short-term investments: Commercial papers 21,961 — (11) 21,950 Corporate debt securities 172,768 543 (34) 173,277 Total short-term investments 194,729 543 (45) 195,227 Total cash, cash equivalents and short-term investments $ 229,705 $ 543 $ (45) $ 230,203 |
Classification of Cash, Cash Equivalents and Short-Term Investments by Contractual Maturity | Classification of the cash, cash equivalents and short-term investments by contractual maturity was as follows: (in thousands) One year or shorter Between 1 and 2 years Total Balances as of June 30, 2021 Cash and cash equivalents (1) $ 40,480 $ — $ 40,480 Short-term investments 201,890 49,538 251,428 Cash, cash equivalents and short-term investments $ 242,370 $ 49,538 $ 291,908 Balances as of December 31, 2020 Cash and cash equivalents (1) $ 34,976 $ — $ 34,976 Short-term investments 141,582 53,645 195,227 Cash, cash equivalents and short-term investments $ 176,558 $ 53,645 $ 230,203 (1) Includes demand deposits and other cash, money market funds and other cash equivalent securities, all with 0-90 day maturity at purchase. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule Of Basic And Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Numerator: Net loss $ (2,282) $ (3,468) $ (9,915) $ (13,938) Denominator: Weighted-average shares used to compute net loss per common share - basic and diluted 34,485 32,152 33,790 31,945 Net loss per share Basic and diluted $ (0.07) $ (0.11) $ (0.29) $ (0.44) |
Schedule Of Antidilutive Securities Excluded From Net Loss Per Share | The following securities were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Options to purchase common stock, including ESPP 213 517 253 568 Restricted stock units and performance stock units 1,831 2,125 1,967 1,880 Convertible senior notes (if-converted) 4,998 — 4,795 — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill are as follows (in thousands): Balance at December 31, 2020 $69,168 Acquired in acquisition (Note 12) 25,678 Balance at June 30, 2021 $94,846 |
Schedule of Finite-Lived Intangible Assets | The estimated useful lives and carrying value of acquired intangible assets are as follows: June 30, 2021 December 31, 2020 (in thousands) Weighted Average Gross Accumulated Net Gross Accumulated Net Developed technology 3.3 $ 17,620 $ (10,992) $ 6,628 $ 12,360 $ (10,255) $ 2,105 Customer relationships 8.0 19,640 (8,073) 11,567 16,350 (7,143) 9,207 Backlog 3.8 5,950 (1,708) 4,242 2,240 (1,343) 897 Trademarks 3.0 1,770 (1,301) 469 1,770 (1,191) 579 Intangible assets, net book value $ 44,980 $ (22,074) $ 22,906 $ 32,720 $ (19,932) $ 12,788 |
Schedule of Estimated Future Amortization of Existing Acquired Intangible Assets | The estimated future amortization of existing acquired intangible assets as of June 30, 2021 was as follows: (in thousands) Future amortization 2021 (remaining six months) $ 3,235 2022 6,057 2023 5,537 2024 3,506 2025 1,409 2026 1,090 Thereafter 2,072 Future amortization expense $ 22,906 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Balance Sheet Components [Abstract] | |
Inventories | Inventories (in thousands) June 30, December 31, Raw materials $ 356 $ 462 Finished goods 8,246 9,697 Total inventories $ 8,602 $ 10,159 |
Property and Equipment, net | Property and equipment, net (in thousands) June 30, December 31, Computer equipment and software $ 15,865 $ 15,912 Furniture, fixtures and equipment 2,760 2,570 Leasehold improvements 5,762 5,306 Manufacturing tools and equipment 2,758 2,506 Construction in process 210 629 Property and equipment, at cost 27,355 26,923 Less: Accumulated depreciation (20,507) (18,820) Property and equipment, net $ 6,848 $ 8,103 |
Components of Net Investment in Sales-type Leases | The components of the Company’s net investment in sales-type leases are as follows: (in thousands) June 30, December 31, Minimum payments to be received on sales-type leases $ 1,101 $ 1,440 Less: Unearned interest income and executory revenue portion (540) (731) Net investment in sales-type leases 561 709 Less: Current portion (316) (360) Non-current net investment in sales-type leases $ 245 $ 349 |
Schedule of Sales-type Lease Activity | Sales-type lease activity recognized in the condensed consolidated statement of operations are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Lease revenue $ 500 $ 1,118 $ 919 $ 1,553 Less: Cost of lease shipments (32) (165) (40) (175) Gross profit $ 468 $ 953 $ 879 $ 1,378 Interest income (expense), net on lease receivable $ 1 $ (6) $ 2 $ (12) Initial direct cost incurred $ 22 $ 60 $ 39 $ 83 |
Minimum Payments Expected Under Sales-type Leases | The minimum payments expected to be received for future years under sales-type leases as of June 30, 2021 were as follows: (in thousands) Future lease payments 2021 (remaining six months) $ 361 2022 522 2023 185 2024 33 Total $ 1,101 |
Schedule of Accrued Payroll And Other Current Liabilities | Accrued payroll and other current liabilities (in thousands) June 30, December 31, Payroll and related expenses $ 11,907 $ 9,043 Accrued payables 2,985 3,160 Operating lease liabilities, current portion 3,627 2,529 Lease financing, current portion 1,097 1,034 Product warranty 433 453 Customer prepayments 1,472 4,292 Sales and use tax payable 513 476 Other taxes payable 2,210 1,832 Other 513 376 Total accrued payroll and other current liabilities $ 24,757 $ 23,195 |
Schedule of Product Warranty Reserve | The changes in the Company’s product warranty reserve are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Warranty balance at the beginning of the period $ 462 $ 440 $ 453 $ 420 Warranty expense accrued for shipments during the period 80 115 150 223 Changes in estimate related to pre-existing warranties (94) 40 (126) 9 Warranty settlements made (15) (74) (44) (131) Total product warranty $ 433 $ 521 $ 433 $ 521 |
Supplemental Balance Sheet and Other Information | Supplemental balance sheet information related to leases was as follows: (in thousands) June 30, Other long-term assets $ 4,908 Accrued payroll and other current liabilities 3,627 Other long-term liabilities 2,692 Total operating lease liabilities $ 6,319 Other information related to leases was as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities $ 1,005 $ 732 $ 1,766 1,444 Right-of-use assets obtained in exchange for lease obligations $ 1,423 $ 122 $ 2,096 122 Weighted average remaining lease term 2.13 years 2.46 years 2.13 years 2.46 years Weighted average discount rate 8 % 8 % 8 % 8 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of June 30, 2021 are as follows: (in thousands) Operating leases 2021 (remaining six months) $ 2,073 2022 3,096 2023 908 2024 523 2025 175 2026 74 Total maturities of lease liabilities 6,849 Less imputed interest (530) Total $ 6,319 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Notes | The 2026 Notes and related interest expense consist of the following: (in thousands) June 30, Liability: Principal $ 224,500 Unamortized issuance costs (6,480) Net carrying amount $ 218,020 Three months ended June 30, Six months ended June 30, (in thousands) 2021 2021 Contractual interest expense $ 276 $ 337 Amortization of issuance costs 295 359 Total interest expense $ 571 $ 696 The 2023 Notes and related interest expense consist of the following: (in thousands) June 30, December 31, Liability: Principal $ 40,804 $ 143,750 Unamortized debt discount — (17,411) Unamortized issuance costs (539) (1,963) Net carrying amount $ 40,265 $ 124,376 Stockholders’ equity: Debt discount for conversion option $ — $ 33,350 Issuance costs — (1,136) Net carrying amount $ — $ 32,214 Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Contractual interest expense $ 153 $ 539 $ 190 $ 1,078 Amortization of debt discount — 1,590 — 3,149 Amortization of issuance costs 70 179 88 355 Total interest expense $ 223 $ 2,308 $ 278 $ 4,582 |
Schedule of Interest Expense Related to the Notes | The net impact to the Company’s stockholders' equity, included in additional paid-in capital, of the above components of the 2023 Notes is as follows: (in thousands) December 31, Conversion option $ 33,350 Purchase of capped calls (8,907) Issuance costs (1,136) Total $ 23,307 |
Stock-based Compensation and _2
Stock-based Compensation and Awards (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary Of Stock Option Activity | The following table summarizes the combined stock option activity under the 2000 Plan, the 2006 Plan and the 2012 Plan and non-plan stock option agreements for the six months ended June 30, 2021: Options Outstanding Number of options Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value (in years) (in thousands) Outstanding at December 31, 2020 299,031 $ 15.58 2.68 $ 7,761 Options exercised (99,167) 16.20 Options canceled (9,431) 16.77 Outstanding at June 30, 2021 190,433 $ 15.19 2.22 $ 4,696 |
ESPP Valuation Assumptions | The following assumptions were used for each respective period for the ESPP: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Expected term (in years) 0.50 0.50 0.50 0.50 Volatility 54.2% - 55% 50% - 54.14% 54.2% - 55% 50.0% - 54.14% Risk-free interest rate 0.03% - 0.12% 0.15% - 1.59% 0.03% - 0.12% 0.15% - 1.59% Dividend yield 0% 0% 0% 0% |
Summary of RSU and PSU Activity | A summary of RSU and PSU activity for the six months ended June 30, 2021 is presented below: Restricted Stock Units and Performance Stock Units Number of shares Weighted Average Grant Date Fair Value per Share Outstanding at December 31, 2020 2,140,763 $ 25.16 Granted 708,213 38.94 Vested (879,615) 24.50 Forfeited (138,662) 27.82 Outstanding at June 30, 2021 1,830,699 $ 30.61 |
PSU Valuation Assumptions | The assumptions used in the Monte Carlo valuation model to value the PSUs were as follows: Grant Date Grant date fair value per share $ 30.70 Expected term (in years) 3 Volatility 42.68 % Risk-free interest rate 0.20 % Dividend yield — % |
Allocation of Stock-based Compensation Expense | The following table presents the allocation of stock-based compensation expense: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Cost of revenue $ 1,395 $ 1,114 $ 2,479 $ 2,087 Research and development 1,233 1,023 2,233 1,989 Sales and marketing 2,432 1,961 4,757 3,821 General and administrative 2,063 2,268 4,516 4,310 Total stock-based compensation $ 7,123 $ 6,366 $ 13,985 $ 12,207 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Identifiable Assets Acquired and Liabilities Assumed | The following table presents the preliminary fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date: (in thousands, except useful lives) Estimated Fair Value Estimated Useful life (in years) Assets Current assets $ 1,527 Restricted cash 598 Fixed assets, net 208 Operating lease right-of-use asset 2,089 Other assets 74 Intangibles assets Customer relationships 3,290 8 Developed technology 5,260 3 Backlog 3,710 4 Goodwill 25,678 Total assets $ 42,434 Liabilities Current liabilities 3,642 Deferred revenue 1,774 Operating lease liabilities, long term 906 Other long-term liabilities 112 Total liabilities 6,434 Net assets acquired $ 36,000 |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Change in Accounting Estimate [Line Items] | |||
Convertible senior notes, net | $ 258,285 | $ 124,376 | |
Accumulated deficit | (154,679) | (159,982) | |
Additional paid-in capital | $ 296,467 | $ 340,515 | |
Cumulative effect | |||
Change in Accounting Estimate [Line Items] | |||
Convertible senior notes, net | $ 17,000 | ||
Accumulated deficit | 15,200 | ||
Additional paid-in capital | $ 32,200 |
Revenue, Deferred Revenue and_3
Revenue, Deferred Revenue and Deferred Commissions - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 56,180 | $ 47,347 | $ 104,848 | $ 88,020 |
Product revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 28,344 | 23,951 | 50,952 | 41,801 |
Product revenue | Device | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 16,256 | 17,100 | 31,529 | 31,003 |
Product revenue | Software | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 12,088 | 6,851 | 19,423 | 10,798 |
Service revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 27,836 | 23,396 | 53,896 | 46,219 |
Service revenue | Subscription and support | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 22,641 | 18,994 | 43,600 | 37,063 |
Service revenue | Professional services and training | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 5,195 | $ 4,402 | $ 10,296 | $ 9,156 |
Revenue, Deferred Revenue and_4
Revenue, Deferred Revenue and Deferred Commissions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||||
Payment terms on invoiced amounts | 30 days | |||||
Contract assets | $ 4,600 | $ 4,600 | $ 4,200 | |||
Estimated period of benefit | 5 years | 5 years | ||||
Deferred commissions | $ 14,854 | $ 14,854 | $ 12,713 | $ 12,293 | ||
Percentage of deferred commissions to be recognized as commission expense in the next 12 months | 39.00% | 39.00% | ||||
Revenue recognized pertaining to amounts deferred as of Beginning of Period | $ 22,600 | $ 43,700 | ||||
Revenue recognized pertaining to amounts deferred as of End of Period | $ 19,500 | $ 34,200 | ||||
Deferred revenue and backlog | $ 179,000 | $ 179,000 | ||||
Percentage of deferred revenue to be recognized over the next 12 months | 66.00% | 66.00% |
Revenue, Deferred Revenue and_5
Revenue, Deferred Revenue and Deferred Commissions - Significant Changes in Deferred Commissions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Change in Contract with Customer, Asset [Roll Forward] | ||
Beginning balance | $ 12,713 | $ 12,293 |
Additions | 4,452 | 6,787 |
Commissions Recognized | (2,311) | (4,226) |
Ending balance | $ 14,854 | $ 14,854 |
Revenue, Deferred Revenue and_6
Revenue, Deferred Revenue and Deferred Commissions - Significant Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Beginning balance | $ 60,136 | $ 64,733 |
Additions | 27,433 | 45,350 |
Revenue Recognized | (25,014) | (47,528) |
Ending balance | $ 62,555 | $ 62,555 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration fair value adjustment | $ (1.7) | $ (1.3) |
Revenue volatility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability, unobservable inputs | 0.11 | 0.11 |
Risk free interest rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability, unobservable inputs | 0.0250 | 0.0250 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 40,480 | $ 34,976 |
Short-term investments | 251,428 | 195,227 |
Corporate debt securities | ||
Assets | ||
Short-term investments | 188,468 | 173,277 |
Money market funds | ||
Assets | ||
Cash and cash equivalents | 15,471 | 363 |
Recurring | ||
Assets | ||
Total assets measured at fair value | 266,899 | 201,590 |
Liabilities | ||
Contingent consideration | 1,661 | 2,959 |
Total liabilities measured at fair value | 1,661 | 2,959 |
Recurring | Level 1 | ||
Assets | ||
Total assets measured at fair value | 15,471 | 363 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Recurring | Level 2 | ||
Assets | ||
Total assets measured at fair value | 251,428 | 201,227 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Recurring | Level 3 | ||
Assets | ||
Total assets measured at fair value | 0 | 0 |
Liabilities | ||
Contingent consideration | 1,661 | 2,959 |
Total liabilities measured at fair value | 1,661 | 2,959 |
Recurring | Commercial paper | ||
Assets | ||
Short-term investments | 62,960 | 21,950 |
Recurring | Commercial paper | Level 1 | ||
Assets | ||
Short-term investments | 0 | 0 |
Recurring | Commercial paper | Level 2 | ||
Assets | ||
Short-term investments | 62,960 | 21,950 |
Recurring | Commercial paper | Level 3 | ||
Assets | ||
Short-term investments | 0 | 0 |
Recurring | U.S. Treasury securities | ||
Assets | ||
Short-term investments | 0 | 6,000 |
Recurring | U.S. Treasury securities | Level 1 | ||
Assets | ||
Short-term investments | 0 | 0 |
Recurring | U.S. Treasury securities | Level 2 | ||
Assets | ||
Short-term investments | 0 | 6,000 |
Recurring | U.S. Treasury securities | Level 3 | ||
Assets | ||
Short-term investments | 0 | 0 |
Recurring | Corporate debt securities | ||
Assets | ||
Short-term investments | 188,468 | 173,277 |
Recurring | Corporate debt securities | Level 1 | ||
Assets | ||
Short-term investments | 0 | 0 |
Recurring | Corporate debt securities | Level 2 | ||
Assets | ||
Short-term investments | 188,468 | 173,277 |
Recurring | Corporate debt securities | Level 3 | ||
Assets | ||
Short-term investments | 0 | 0 |
Recurring | Money market funds | ||
Assets | ||
Cash and cash equivalents | 15,471 | 363 |
Recurring | Money market funds | Level 1 | ||
Assets | ||
Cash and cash equivalents | 15,471 | 363 |
Recurring | Money market funds | Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Money market funds | Level 3 | ||
Assets | ||
Cash and cash equivalents | $ 0 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Unobservable Input Reconciliation (Details) - Recurring - Level 3 $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 2,959 |
Fair value adjustment for contingent consideration included in earnings | (1,298) |
Ending balance | $ 1,661 |
Cash, Cash Equivalents and Sh_3
Cash, Cash Equivalents and Short-Term Investments - Schedule of Cash, Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Cash and cash equivalents: | ||
Amortized Cost | $ 40,480 | $ 34,976 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair value | 40,480 | 34,976 |
Short-term investments: | ||
Amortized Cost | 251,321 | 194,729 |
Unrealized Gains | 188 | 543 |
Unrealized Losses | (81) | (45) |
Fair value | 251,428 | 195,227 |
Total cash, cash equivalents and short-term investments | ||
Amortized Cost | 291,801 | 229,705 |
Unrealized Gains | 188 | 543 |
Unrealized Losses | (81) | (45) |
Fair value | 291,908 | 230,203 |
Commercial papers | ||
Short-term investments: | ||
Amortized Cost | 62,956 | 21,961 |
Unrealized Gains | 6 | 0 |
Unrealized Losses | (2) | (11) |
Fair value | 62,960 | 21,950 |
Corporate debt securities | ||
Short-term investments: | ||
Amortized Cost | 188,365 | 172,768 |
Unrealized Gains | 182 | 543 |
Unrealized Losses | (79) | (34) |
Fair value | 188,468 | 173,277 |
Cash | ||
Cash and cash equivalents: | ||
Amortized Cost | 25,009 | 28,613 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair value | 25,009 | 28,613 |
Money market funds | ||
Cash and cash equivalents: | ||
Amortized Cost | 15,471 | 363 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair value | $ 15,471 | 363 |
U.S. government agency securities | ||
Cash and cash equivalents: | ||
Amortized Cost | 6,000 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair value | $ 6,000 |
Cash, Cash Equivalents and Sh_4
Cash, Cash Equivalents and Short-Term Investments - Classification of Cash, Cash Equivalents and Short-Term Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Cash and cash equivalents | $ 40,480 | $ 34,976 |
Short-term investments | 251,428 | 195,227 |
Cash, cash equivalents and short-term investments | 291,908 | 230,203 |
One year or shorter | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash and cash equivalents | 40,480 | 34,976 |
Short-term investments | 201,890 | 141,582 |
Cash, cash equivalents and short-term investments | 242,370 | 176,558 |
Between 1 and 2 years | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 49,538 | 53,645 |
Cash, cash equivalents and short-term investments | $ 49,538 | $ 53,645 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||||
Net loss | $ (2,282) | $ (7,633) | $ (3,468) | $ (10,470) | $ (9,915) | $ (13,938) |
Denominator: | ||||||
Weighted-average shares used to compute net income (loss) per common share - basic (in shares) | 34,485 | 32,152 | 33,790 | 31,945 | ||
Weighted-average shares used to compute net income (loss) per common share - diluted (in shares) | 34,485 | 32,152 | 33,790 | 31,945 | ||
Net loss per share | ||||||
Basic (in dollars per share) | $ (0.07) | $ (0.11) | $ (0.29) | $ (0.44) | ||
Diluted (in dollars per share) | $ (0.07) | $ (0.11) | $ (0.29) | $ (0.44) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded From Computation Of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Employee stock options, including ESPP | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 213 | 517 | 253 | 568 | |
Restricted stock units and performance based restricted stock units | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 1,831 | 2,125 | 1,967 | 1,880 | |
Convertible senior notes (if-converted) | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 4,998 | 0 | 4,795 | 0 | 5,100 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 94,846 | $ 94,846 | $ 69,168 | ||
Addition to goodwill | 25,678 | ||||
Amortization expense | $ 1,300 | $ 300 | $ 2,100 | $ 600 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance at December 31, 2020 | $ 69,168 |
Acquired in acquisition (Note 12) | 25,678 |
Balance at June 30, 2021 | $ 94,846 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 44,980 | $ 32,720 |
Accumulated Amortization | (22,074) | (19,932) |
Net Carrying Amount | $ 22,906 | 12,788 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (years) | 3 years 3 months 18 days | |
Gross Carrying Amount | $ 17,620 | 12,360 |
Accumulated Amortization | (10,992) | (10,255) |
Net Carrying Amount | $ 6,628 | 2,105 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (years) | 8 years | |
Gross Carrying Amount | $ 19,640 | 16,350 |
Accumulated Amortization | (8,073) | (7,143) |
Net Carrying Amount | $ 11,567 | 9,207 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (years) | 3 years 9 months 18 days | |
Gross Carrying Amount | $ 5,950 | 2,240 |
Accumulated Amortization | (1,708) | (1,343) |
Net Carrying Amount | $ 4,242 | 897 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (years) | 3 years | |
Gross Carrying Amount | $ 1,770 | 1,770 |
Accumulated Amortization | (1,301) | (1,191) |
Net Carrying Amount | $ 469 | $ 579 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization Schedule (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 (remaining six months) | $ 3,235 | |
2022 | 6,057 | |
2023 | 5,537 | |
2024 | 3,506 | |
2025 | 1,409 | |
2026 | 1,090 | |
Thereafter | 2,072 | |
Net Carrying Amount | $ 22,906 | $ 12,788 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Balance Sheet Components [Abstract] | ||
Raw materials | $ 356 | $ 462 |
Finished goods | 8,246 | 9,697 |
Total inventories | $ 8,602 | $ 10,159 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, at cost | $ 27,355 | $ 27,355 | $ 26,923 | ||
Less: Accumulated depreciation | (20,507) | (20,507) | (18,820) | ||
Property and equipment, net | 6,848 | 6,848 | 8,103 | ||
Depreciation | 1,300 | $ 1,200 | 2,400 | $ 2,200 | |
Computer equipment and software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, at cost | 15,865 | 15,865 | 15,912 | ||
Furniture, fixtures and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, at cost | 2,760 | 2,760 | 2,570 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, at cost | 5,762 | 5,762 | 5,306 | ||
Manufacturing tools and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, at cost | 2,758 | 2,758 | 2,506 | ||
Construction in process | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, at cost | $ 210 | $ 210 | $ 629 |
Balance Sheet Components - In_2
Balance Sheet Components - Investment in Sales Type Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Sales-type and Direct Financing Leases [Line Items] | ||
Minimum payments to be received on sales-type leases | $ 1,101 | $ 1,440 |
Less: Unearned interest income and executory revenue portion | (540) | (731) |
Net investment in sales-type leases | 561 | 709 |
Less: Current portion | (316) | (360) |
Non-current net investment in sales-type leases | $ 245 | $ 349 |
Minimum | ||
Schedule of Sales-type and Direct Financing Leases [Line Items] | ||
Lease term | 3 years | |
Maximum | ||
Schedule of Sales-type and Direct Financing Leases [Line Items] | ||
Lease term | 4 years |
Balance Sheet Components - Sale
Balance Sheet Components - Sales Type Lease Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Balance Sheet Components [Abstract] | ||||
Lease revenue | $ 500 | $ 1,118 | $ 919 | $ 1,553 |
Less: Cost of lease shipments | (32) | (165) | (40) | (175) |
Gross profit | 468 | 953 | 879 | 1,378 |
Interest income (expense), net on lease receivable | 1 | (6) | 2 | (12) |
Initial direct cost incurred | $ 22 | $ 60 | $ 39 | $ 83 |
Balance Sheet Components - Futu
Balance Sheet Components - Future Payments- Sales Type Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Balance Sheet Components [Abstract] | ||
2021 (remaining six months) | $ 361 | |
2022 | 522 | |
2023 | 185 | |
2024 | 33 | |
Total | $ 1,101 | $ 1,440 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule Of Accrued Payroll And Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Balance Sheet Components [Abstract] | ||
Payroll and related expenses | $ 11,907 | $ 9,043 |
Accrued payables | 2,985 | 3,160 |
Operating lease liabilities, current portion | 3,627 | 2,529 |
Lease financing, current portion | 1,097 | 1,034 |
Product warranty | 433 | 453 |
Customer prepayments | 1,472 | 4,292 |
Sales and use tax payable | 513 | 476 |
Other taxes payable | 2,210 | 1,832 |
Other | 513 | 376 |
Total accrued payroll and other current liabilities | $ 24,757 | $ 23,195 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Product Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Warranty balance at the beginning of the period | $ 462 | $ 440 | $ 453 | $ 420 |
Warranty expense accrued for shipments during the period | 80 | 115 | 150 | 223 |
Changes in estimate related to pre-existing warranties | (94) | 40 | (126) | 9 |
Warranty settlements made | (15) | (74) | (44) | (131) |
Total product warranty | $ 433 | $ 521 | $ 433 | $ 521 |
Balance Sheet Components - Leas
Balance Sheet Components - Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Other long-term assets | $ 0.8 | $ 0.7 | $ 1.5 | $ 1.4 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease remaining term (years) | 9 months | 9 months | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease remaining term (years) | 8 years | 8 years |
Balance Sheet Components - Supp
Balance Sheet Components - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Balance Sheet Components [Abstract] | ||
Other long-term assets | $ 4,908 | |
Accrued payroll and other current liabilities | 3,627 | $ 2,529 |
Other long-term liabilities | 2,692 | |
Total operating lease liabilities | $ 6,319 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other long-term assets | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued payroll and other current liabilities | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities |
Balance Sheet Components - Othe
Balance Sheet Components - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Balance Sheet Components [Abstract] | ||||
Cash paid for amounts included in the measurement of lease liabilities | $ 1,005 | $ 732 | $ 1,766 | $ 1,444 |
Right-of-use assets obtained in exchange for lease obligations | $ 1,423 | $ 122 | $ 2,096 | $ 122 |
Weighted average remaining lease term | 2 years 1 month 17 days | 2 years 5 months 15 days | 2 years 1 month 17 days | 2 years 5 months 15 days |
Weighted average discount rate | 8.00% | 8.00% | 8.00% | 8.00% |
Balance Sheet Components - Matu
Balance Sheet Components - Maturities of Leases (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Balance Sheet Components [Abstract] | |
2021 (remaining six months) | $ 2,073 |
2022 | 3,096 |
2023 | 908 |
2024 | 523 |
2025 | 175 |
2026 | 74 |
Total maturities of lease liabilities | 6,849 |
Less imputed interest | (530) |
Total operating lease liabilities | $ 6,319 |
Balance Sheet Components - Le_2
Balance Sheet Components - Lease Not Yet Commenced (Details) $ in Millions | Jun. 30, 2021USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Lease not yet commenced | $ 15.5 |
Convertible Senior Notes - Conv
Convertible Senior Notes - Convertible Senior Notes due 2026 (Details) - Convertible Debt - Convertible Senior Notes, due 2026 | 1 Months Ended | |||
Mar. 31, 2021USD ($)day$ / shares | May 31, 2018 | Jun. 30, 2021USD ($) | Apr. 30, 2021USD ($) | |
Debt Instrument [Line Items] | ||||
Principal | $ | $ 200,000,000 | $ 224,500,000 | ||
Stated interest rate | 0.50% | |||
Overallotment option | $ | $ 30,000,000 | |||
Overallotments period | 30 days | |||
Overallotment option exercised | $ | $ 24,500,000 | |||
Percent of conversion price triggering conversion feature | 130.00% | |||
Convertible debt, threshold trading days | 20 | |||
Convertible debt, threshold consecutive trading days | 30 | |||
Redemption price percentage | 100.00% | |||
Conversion ratio | 0.0166272 | |||
Convertible debt, conversion price (in dollars per share) | $ / shares | $ 60.14 | |||
Carrying amount of debt | $ | 218,000,000 | |||
Unamortized issuance costs | $ | $ 6,500,000 | |||
Effective interest rate | 1.05% | |||
Conversion option one | ||||
Debt Instrument [Line Items] | ||||
Percent of conversion price triggering conversion feature | 130.00% | |||
Convertible debt, threshold trading days | 20 | |||
Convertible debt, threshold consecutive trading days | 30 | |||
Conversion option two | ||||
Debt Instrument [Line Items] | ||||
Percent of conversion price triggering conversion feature | 98.00% | |||
Convertible debt, threshold trading days | 5 | |||
Convertible debt, threshold consecutive trading days | 10 | |||
Conversion option three | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100.00% |
Convertible Senior Notes - 2026
Convertible Senior Notes - 2026 Notes And Related Interest Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Liability: | ||||
Convertible senior notes, net | $ 258,285,000 | $ 258,285,000 | $ 124,376,000 | |
Convertible Senior Notes, due 2026 | Convertible Debt | ||||
Liability: | ||||
Principal | 224,500,000 | 224,500,000 | $ 200,000,000 | |
Unamortized issuance costs | (6,480,000) | (6,480,000) | ||
Convertible senior notes, net | 218,020,000 | 218,020,000 | ||
Interest Expense [Abstract] | ||||
Contractual interest expense | 276,000 | 337,000 | ||
Amortization of issuance costs | 295,000 | 359,000 | ||
Total interest expense | $ 571,000 | $ 696,000 |
Convertible Senior Notes - 20_2
Convertible Senior Notes - 2026 Capped Calls (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2021 | Apr. 30, 2021 | Apr. 05, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | May 31, 2018 |
Debt Instrument [Line Items] | ||||||
Capped Calls, initial strike price (in dollars per share) | $ 60.14 | $ 32.25 | ||||
Capped Calls, initial cap price (in dollars per share) | $ 77.96 | $ 38.94 | ||||
Additional privately negotiated capped calls | $ 1,900 | |||||
Convertible Senior Notes Due 2026 At 0.50%, Option Portion | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt discount for conversion option | $ 17,400 | |||||
Convertible Senior Notes, due 2026 | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Overallotment option exercised | $ 24,500 | |||||
Convertible Senior Notes, due 2023 | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt discount for conversion option | $ 0 | $ 33,400 | $ 33,350 | |||
Overallotment option exercised | $ 24,500 |
Convertible Senior Notes - Co_2
Convertible Senior Notes - Convertible Senior Notes due 2023 (Details) | Dec. 31, 2020USD ($) | May 31, 2018USD ($)day$ / shares | Mar. 31, 2021USD ($)shares | Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) | May 31, 2021USD ($) | Jan. 01, 2021USD ($) |
Debt Instrument [Line Items] | |||||||
Convertible senior notes converted to equity | $ 477,000 | $ 0 | |||||
Convertible senior notes, net | $ 124,376,000 | $ 258,285,000 | |||||
Stock price (in dollars per share) | $ / shares | $ 39.85 | ||||||
Convertible Debt | Convertible Senior Notes, due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Principal | 143,750,000 | $ 143,800,000 | $ 40,804,000 | ||||
Stated interest rate | 1.50% | ||||||
Proceeds from issuance of convertible senior notes, net of issuance costs | $ 138,900,000 | ||||||
Aggregate principal amount retired in conversion | $ 102,900,000 | ||||||
Convertible senior notes converted to equity | $ 102,900,000 | ||||||
Converted instrument, shares issued | shares | 1,277,731 | ||||||
Accrued interest | $ 500,000 | ||||||
Inducement loss | 2,100,000 | ||||||
Loss on extinguishment of debt | 1,600,000 | ||||||
Write off of unamortized debt issuance cost | $ 1,600,000 | ||||||
Denominator in calculation of trading price | $ 1,000 | ||||||
Conversion ratio | 0.0310073 | ||||||
Convertible debt, conversion price (in dollars per share) | $ / shares | $ 32.25 | ||||||
Conversion option | $ 33,350,000 | 0 | $ 33,400,000 | ||||
Debt discount effective interest rate | 7.60% | ||||||
Debt issuance costs | $ 4,900,000 | 500,000 | |||||
Issuance costs | 1,136,000 | 0 | $ 3,800,000 | ||||
Convertible senior notes, net | 124,376,000 | $ 40,265,000 | |||||
Effective interest rate | 2.19% | ||||||
Convertible Debt | Convertible Senior Notes, due 2023 | Conversion option one | |||||||
Debt Instrument [Line Items] | |||||||
Convertible debt, threshold trading days | day | 20 | ||||||
Convertible debt, threshold consecutive trading days | day | 30 | ||||||
Percent of conversion price triggering conversion feature | 130.00% | ||||||
Convertible Debt | Convertible Senior Notes, due 2023 | Conversion option two | |||||||
Debt Instrument [Line Items] | |||||||
Denominator in calculation of trading price | $ 1,000 | ||||||
Convertible debt, threshold trading days | day | 5 | ||||||
Convertible debt, threshold consecutive trading days | day | 10 | ||||||
Percent of conversion price triggering conversion feature | 98.00% | ||||||
Convertible Debt | Convertible Senior Notes, due 2023 | Conversion option three | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage | 100.00% | ||||||
Convertible Debt | Convertible Senior Notes, inducement, due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Additional issuance (in shares) | shares | 46,216 | ||||||
Convertible Debt | Convertible Senior Notes At 1.50%, Option Portion | |||||||
Debt Instrument [Line Items] | |||||||
Principal | $ 18,800,000 | ||||||
Conversion option | $ 33,350,000 | ||||||
Convertible Debt | The Notes | |||||||
Debt Instrument [Line Items] | |||||||
Estimated fair value of the Notes | $ 270,000,000 | ||||||
If-converted value of the Notes | $ 199,200,000 |
Convertible Senior Notes - 2023
Convertible Senior Notes - 2023 Notes and Related Interest Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | May 31, 2018 | |
Debt Instrument [Line Items] | ||||||||
Convertible senior notes, net | $ 258,285,000 | $ 258,285,000 | $ 124,376,000 | |||||
Convertible Senior Notes, due 2023 | Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | 40,804,000 | 40,804,000 | 143,750,000 | $ 143,800,000 | ||||
Unamortized issuance costs | 0 | 0 | (17,411,000) | |||||
Unamortized issuance costs | (539,000) | (539,000) | (1,963,000) | |||||
Convertible senior notes, net | 40,265,000 | 40,265,000 | 124,376,000 | |||||
Conversion option | 0 | 0 | $ 33,400,000 | 33,350,000 | ||||
Issuance costs | 0 | 0 | $ (3,800,000) | (1,136,000) | ||||
Net carrying amount | 0 | 0 | $ 32,214,000 | |||||
Contractual interest expense | 153,000 | $ 539,000 | 190,000 | $ 1,078,000 | ||||
Amortization of debt discount | 0 | 1,590,000 | 0 | 3,149,000 | ||||
Amortization of issuance costs | 70,000 | 179,000 | 88,000 | 355,000 | ||||
Total interest expense | 223,000 | $ 2,308,000 | 278,000 | $ 4,582,000 | ||||
Convertible Senior Notes, due 2026 | Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | 224,500,000 | 224,500,000 | $ 200,000,000 | |||||
Unamortized issuance costs | (6,480,000) | (6,480,000) | ||||||
Convertible senior notes, net | 218,020,000 | 218,020,000 | ||||||
Contractual interest expense | 276,000 | 337,000 | ||||||
Amortization of issuance costs | 295,000 | 359,000 | ||||||
Total interest expense | $ 571,000 | $ 696,000 |
Convertible Senior Notes - 20_3
Convertible Senior Notes - 2023 Capped Calls (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | |
May 31, 2018 | Jun. 30, 2021 | |
Debt Disclosure [Abstract] | ||
Capped Calls, initial strike price (in dollars per share) | $ 32.25 | $ 60.14 |
Capped Calls, initial cap price (in dollars per share) | $ 38.94 | $ 77.96 |
Capped Calls, number of shares covered | 4.5 | |
Payment for purchase of capped calls | $ 8.9 |
Convertible Senior Notes - Net
Convertible Senior Notes - Net Impact To The Company’s Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
May 31, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||||
Purchase of capped calls | $ (8,900) | |||||
2023 and 2026 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share, amount | 4,998 | 0 | 4,795 | 0 | 5,100 | |
Convertible Senior Notes At 1.50%, Option Portion | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Conversion option | $ 33,350 | |||||
Purchase of capped calls | (8,907) | |||||
Issuance costs | (1,136) | |||||
Total | $ 23,307 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventories | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Purchase obligation | $ 9.7 | $ 6.1 |
Stock-based Compensation and _3
Stock-based Compensation and Awards - Stock Option Activity (Details) - Option $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |
Number of options | ||
Beginning balance (in shares) | shares | 299,031 | |
Options exercised (in shares) | shares | (99,167) | |
Options canceled (in shares) | shares | (9,431) | |
Ending balance (in shares) | shares | 190,433 | 299,031 |
Weighted average exercise price | ||
Beginning balance (in dollars per share) | $ / shares | $ 15.58 | |
Options exercises (in dollars per share) | $ / shares | 16.20 | |
Options canceled (in dollars per share) | $ / shares | 16.77 | |
Ending balance (in dollars per share) | $ / shares | $ 15.19 | $ 15.58 |
Weighted average remaining contractual term (in years) | 2 years 2 months 19 days | 2 years 8 months 4 days |
Aggregate intrinsic value | $ | $ 4,696 | $ 7,761 |
Stock-based Compensation and _4
Stock-based Compensation and Awards - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 0 | ||
Options granted (in shares) | 0 | ||
Options, RSUs and other options | 2012 Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | 1,742,713 | ||
ESPP | 2012 ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock purchased (in shares) | 77,538 | 126,046 | |
Average price of shares purchased (in dollars per share) | $ 15.60 | $ 27.68 | $ 15.60 |
Shares available for future issuance (in shares) | 1,198,413 | ||
Restricted Stock Units and Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 47,200,000 | ||
Weighted-average recognition period (in years) | 2 years 3 days | ||
Granted (in shares) | 708,213 | ||
PSUs | 2012 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 145,877 | ||
Vesting period | 3 years | ||
PSUs | 2012 Equity Incentive Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued, percentage of target | 0.00% | ||
PSUs | 2012 Equity Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued, percentage of target | 200.00% |
Stock-based Compensation and _5
Stock-based Compensation and Awards - ESPP Valuation Assumptions (Details) - 2012 ESPP - ESPP | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Equity B-S-M Fair Value Assumptions | ||||
Expected term (in years) | 6 months | 6 months | 6 months | 6 months |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum | ||||
Equity B-S-M Fair Value Assumptions | ||||
Volatility | 54.20% | 50.00% | 54.20% | 50.00% |
Risk-free interest rate | 0.03% | 0.15% | 0.03% | 0.15% |
Maximum | ||||
Equity B-S-M Fair Value Assumptions | ||||
Volatility | 55.00% | 54.14% | 55.00% | 54.14% |
Risk-free interest rate | 0.12% | 1.59% | 0.12% | 1.59% |
Stock-based Compensation and _6
Stock-based Compensation and Awards - Summary of Restricted Stock Activity (Details) - Restricted Stock Units and Performance Stock Units | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Number of Shares: | |
Beginning balance (in shares) | shares | 2,140,763 |
Granted (in shares) | shares | 708,213 |
Vested (in shares) | shares | (879,615) |
Forfeited (in shares) | shares | (138,662) |
Ending balance (in shares) | shares | 1,830,699 |
Weighted Average Grant Date Fair Value per Share (in dollars per share): | |
Beginning balance (in dollars per share) | $ / shares | $ 25.16 |
Grant (in dollars per share) | $ / shares | 38.94 |
Vested (in dollars per share) | $ / shares | 24.50 |
Forfeited (in dollars per share) | $ / shares | 27.82 |
Ending balance (in dollars per share) | $ / shares | $ 30.61 |
Stock-based Compensation and _7
Stock-based Compensation and Awards - Stock-based Compensation and Awards PSU Valuation Assumptions (Details) - PSUs | Jun. 01, 2020$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date fair value per share (in dollars per share) | $ 30.70 |
Expected term (in years) | 3 years |
Volatility | 42.68% |
Risk-free interest rate | 0.20% |
Dividend yield | 0.00% |
Stock-based Compensation and _8
Stock-based Compensation and Awards - Share-based Compensation Allocated to Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 7,123 | $ 6,366 | $ 13,985 | $ 12,207 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,395 | 1,114 | 2,479 | 2,087 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,233 | 1,023 | 2,233 | 1,989 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2,432 | 1,961 | 4,757 | 3,821 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2,063 | $ 2,268 | $ 4,516 | $ 4,310 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
(Provision for) benefit from income taxes | $ 88 | $ (44) | $ 334 | $ 81 |
Statute of limitations | $ 50 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) - PatientSafe Solutions | May 04, 2021USD ($) |
Business Acquisition [Line Items] | |
Payments to acquire businesses | $ 36,000,000 |
Cash acquired | 200,000 |
Goodwill deductible for tax purposes | 0 |
Acquisition-related costs | $ 1,700,000 |
Business Acquisition - Identifi
Business Acquisition - Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | May 04, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Intangibles assets | |||
Goodwill | $ 94,846 | $ 69,168 | |
Customer relationships | |||
Intangibles assets | |||
Weighted Average Useful Life (years) | 8 years | ||
Developed technology | |||
Intangibles assets | |||
Weighted Average Useful Life (years) | 3 years 3 months 18 days | ||
Backlog | |||
Intangibles assets | |||
Weighted Average Useful Life (years) | 3 years 9 months 18 days | ||
PatientSafe Solutions | |||
Assets | |||
Current assets | $ 1,527 | ||
Restricted cash | 598 | ||
Fixed assets, net | 208 | ||
Operating lease right-of-use asset | 2,089 | ||
Other assets | 74 | ||
Intangibles assets | |||
Total assets | 42,434 | ||
Liabilities | |||
Current liabilities | 3,642 | ||
Deferred revenue | 1,774 | ||
Operating lease liabilities, long term | 906 | ||
Other long-term liabilities | 112 | ||
Total liabilities | 6,434 | ||
Net assets acquired | 36,000 | ||
PatientSafe Solutions | Customer relationships | |||
Intangibles assets | |||
Intangible assets | $ 3,290 | ||
Weighted Average Useful Life (years) | 8 years | ||
PatientSafe Solutions | Developed technology | |||
Intangibles assets | |||
Intangible assets | $ 5,260 | ||
Weighted Average Useful Life (years) | 3 years | ||
PatientSafe Solutions | Backlog | |||
Intangibles assets | |||
Intangible assets | $ 3,710 | ||
Weighted Average Useful Life (years) | 4 years | ||
Goodwill | $ 25,678 |